Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 17, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | Ball Corp | ||
Entity File Number | 001-07349 | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-0160610 | ||
Entity Address, Address Line One | 10 Longs Peak Drive, P.O. Box 5000 | ||
Entity Address, City or Town | Broomfield | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80021-2510 | ||
City Area Code | 303 | ||
Local Phone Number | 469-3131 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 23.2 | ||
Entity Common Stock, Shares Outstanding | 325,773,210 | ||
Title of 12(b) Security | Common Stock, without par value | ||
Trading Symbol | BLL | ||
Security Exchange Name | NYSE | ||
Entity Central Index Key | 0000009389 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Earnings | |||||||||||
Net sales | $ 2,719 | $ 2,953 | $ 3,017 | $ 2,785 | $ 2,803 | $ 2,946 | $ 3,101 | $ 2,785 | $ 11,474 | $ 11,635 | $ 10,983 |
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (9,203) | (9,329) | (8,717) | ||||||||
Depreciation and amortization | (678) | (702) | (729) | ||||||||
Selling, general and administrative | (417) | (478) | (514) | ||||||||
Business consolidation and other activities | (244) | (191) | (221) | ||||||||
Total costs and expenses | (10,542) | (10,700) | (10,181) | ||||||||
Earnings before interest and taxes | 932 | 935 | 802 | ||||||||
Interest expense | (317) | (301) | (285) | ||||||||
Debt refinancing and other costs | (7) | (1) | (3) | ||||||||
Total interest expense | (324) | (302) | (288) | ||||||||
Earnings before taxes | 123 | 119 | 226 | 140 | 123 | 192 | 166 | 152 | 608 | 633 | 514 |
Tax (provision) benefit | (71) | (185) | (165) | ||||||||
Equity in results of affiliates, net of tax | (1) | 5 | 31 | ||||||||
Net earnings | 536 | 453 | 380 | ||||||||
Net (earnings) loss attributable to noncontrolling interests | 30 | 1 | (6) | ||||||||
Net earnings attributable to Ball Corporation | $ 160 | $ 92 | $ 197 | $ 117 | $ 151 | $ 59 | $ 119 | $ 125 | $ 566 | $ 454 | $ 374 |
Earnings per share: | |||||||||||
Per basic share (in dollars per share) | $ 0.49 | $ 0.28 | $ 0.59 | $ 0.35 | $ 0.45 | $ 0.17 | $ 0.34 | $ 0.36 | $ 1.71 | $ 1.32 | $ 1.07 |
Per diluted share (in dollars per share) | $ 0.48 | $ 0.27 | $ 0.58 | $ 0.34 | $ 0.44 | $ 0.17 | $ 0.34 | $ 0.35 | $ 1.66 | $ 1.29 | $ 1.05 |
Weighted average shares outstanding (000s): | |||||||||||
Basic (in shares) | 331,102 | 344,796 | 350,269 | ||||||||
Diluted (in shares) | 340,121 | 352,321 | 356,985 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Earnings (Loss) | |||
Net earnings | $ 536 | $ 453 | $ 380 |
Other comprehensive earnings (loss): | |||
Foreign currency translation adjustment | 166 | (197) | 38 |
Pension and other postretirement benefits | (270) | 122 | 296 |
Derivatives designated as hedges | 58 | (86) | 17 |
Total other comprehensive earnings (loss) | (46) | (161) | 351 |
Income tax (provision) benefit | 50 | (18) | (65) |
Total other comprehensive earnings (loss), net of tax | 4 | (179) | 286 |
Total comprehensive earnings (loss) | 540 | 274 | 666 |
Comprehensive (earnings) loss attributable to noncontrolling interests | 30 | 1 | (7) |
Comprehensive earnings (loss) attributable to Ball Corporation | $ 570 | $ 275 | $ 659 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | |||||
Cash and cash equivalents | $ 1,798 | $ 721 | $ 448 | ||
Receivables, net | 1,631 | 1,802 | |||
Inventories, net | 1,274 | 1,271 | |||
Other current assets | 181 | $ 139 | 146 | ||
Total current assets | 4,884 | 3,940 | |||
Noncurrent assets | |||||
Property, plant and equipment, net | 4,470 | 4,542 | |||
Goodwill | 4,419 | 4,475 | 4,933 | ||
Intangible assets, net | 2,002 | 2,188 | |||
Other assets | 1,585 | 1,409 | |||
Total assets | 17,360 | 16,554 | |||
Current liabilities | |||||
Short-term debt and current portion of long-term debt | 1,480 | 219 | |||
Accounts payable | 3,136 | 3,095 | |||
Accrued employee costs | 285 | 289 | |||
Other current liabilities | 676 | 489 | 492 | ||
Total current liabilities | 5,577 | 4,095 | |||
Noncurrent liabilities | |||||
Long-term debt | 6,337 | 6,510 | |||
Employee benefit obligations | 1,486 | 1,455 | |||
Deferred taxes | 561 | 645 | |||
Other liabilities | 380 | $ 273 | 287 | ||
Total liabilities | 14,341 | 12,992 | |||
Equity | |||||
Common stock (676,302,319 shares issued - 2019; 673,236,720 shares issued - 2018) | 1,178 | 1,157 | |||
Retained earnings | 5,803 | 5,341 | |||
Accumulated other comprehensive earnings (loss) | (910) | (835) | |||
Treasury stock, at cost (351,667,322 shares - 2019; 337,978,571 shares - 2018) | (3,122) | (2,205) | |||
Total Ball Corporation shareholders' equity | 2,949 | 3,458 | |||
Noncontrolling interests | 70 | 104 | |||
Total equity | 3,019 | 3,562 | $ 4,046 | $ 3,541 | |
Total liabilities and equity | $ 17,360 | $ 16,554 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Common stock, shares issued | 676,302,319 | 673,236,720 |
Treasury stock, at cost | 351,667,322 | 337,978,571 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 536 | $ 453 | $ 380 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 678 | 702 | 729 |
Business consolidation and other activities | 244 | 191 | 221 |
Deferred tax provision (benefit) | (45) | 35 | 82 |
Other, net | (101) | 95 | (268) |
Working capital changes, excluding effects of acquisitions: | |||
Receivables | 49 | (17) | (189) |
Inventories | (45) | (248) | (66) |
Other current assets | (18) | (47) | 21 |
Accounts payable | 72 | 592 | 639 |
Accrued employee costs | (1) | (77) | 5 |
Other current liabilities | 175 | (140) | (28) |
Other, net | 4 | 27 | (48) |
Cash provided by (used in) operating activities | 1,548 | 1,566 | 1,478 |
Cash Flows from Investing Activities | |||
Capital expenditures | (598) | (816) | (556) |
Proceeds from business dispositions, net of cash sold | 160 | 539 | (2) |
Other, net | 16 | 71 | 13 |
Cash provided by (used in) investing activities | (422) | (206) | (545) |
Cash Flows from Financing Activities | |||
Long-term borrowings | 2,819 | 1,475 | 765 |
Repayments of long-term borrowings | (1,524) | (1,533) | (1,810) |
Net change in short-term borrowings | (183) | (120) | 184 |
Proceeds from issuances of common stock | 19 | 28 | 27 |
Acquisitions of treasury stock | (964) | (739) | (103) |
Common stock dividends | (182) | (137) | (129) |
Other, net | (31) | (14) | (7) |
Cash provided by (used in) financing activities | (46) | (1,040) | (1,073) |
Effect of exchange rate changes on cash | (2) | (51) | (8) |
Change in cash, cash equivalents and restricted cash | 1,078 | 269 | (148) |
Cash, cash equivalents and restricted cash - beginning of period | 728 | 459 | 607 |
Cash, cash equivalents and restricted cash - end of period | $ 1,806 | $ 728 | $ 459 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Common Stock | Treasury Stock, Common | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss). | Noncontrolling Interest | Total |
Balance at beginning of the period at Dec. 31, 2016 | $ 1,038 | $ (1,401) | $ 4,739 | $ (941) | $ 106 | $ 3,541 |
Balance (in shares) at Dec. 31, 2016 | 668,504 | (318,774) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 374 | 6 | 380 | |||
Other comprehensive earnings (loss), net of tax | 285 | 1 | 286 | |||
Common dividends, net of tax benefits | (126) | (126) | ||||
Treasury stock purchases | $ (103) | (103) | ||||
Treasury stock purchases (in shares) | (2,552) | |||||
Treasury shares reissued | $ 22 | 22 | ||||
Treasury shares reissued (in shares) | 631 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 46 | 46 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 2,072 | |||||
Dividends paid to noncontrolling interests | (5) | (5) | ||||
Other activity | $ 8 | (3) | 5 | |||
Balance at end of the period at Dec. 31, 2017 | $ 1,084 | $ (1,474) | 4,987 | (656) | 105 | 4,046 |
Balance (in shares) at Dec. 31, 2017 | 670,576 | (320,695) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Impact of new adopting revenue recognition accounting standard | 37 | 1 | 38 | |||
Balance after adjustment | $ 1,084 | $ (1,474) | 5,024 | (655) | 105 | 4,084 |
Net earnings | 454 | (1) | 453 | |||
Other comprehensive earnings (loss), net of tax | (179) | (179) | ||||
Common dividends, net of tax benefits | (138) | (138) | ||||
Treasury stock purchases | $ (755) | (755) | ||||
Treasury stock purchases (in shares) | (18,021) | |||||
Treasury shares reissued | $ 23 | 23 | ||||
Treasury shares reissued (in shares) | 737 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 73 | 73 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 2,661 | |||||
Other activity | $ 1 | 1 | (1) | 1 | ||
Balance at end of the period at Dec. 31, 2018 | $ 1,157 | $ (2,205) | 5,341 | (835) | 104 | 3,562 |
Balance (in shares) at Dec. 31, 2018 | 673,237 | (337,979) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 566 | (30) | 536 | |||
Other comprehensive earnings (loss), net of tax, excluding currency translation on sale | (41) | (41) | ||||
Other comprehensive earnings (loss), net of tax | 4 | |||||
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | 45 | ||||
Common dividends, net of tax benefits | (181) | (181) | ||||
Treasury stock purchases | $ (950) | (950) | ||||
Treasury stock purchases (in shares) | (14,383) | |||||
Treasury shares reissued | $ 25 | 25 | ||||
Treasury shares reissued (in shares) | 695 | |||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | $ 21 | 21 | ||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged (in shares) | 3,065 | |||||
Other activity | $ 8 | (2) | (4) | 2 | ||
Reclassification of stranded tax effects | 79 | (79) | ||||
Balance at end of the period at Dec. 31, 2019 | $ 1,178 | $ (3,122) | $ 5,803 | $ (910) | $ 70 | $ 3,019 |
Balance (in shares) at Dec. 31, 2019 | 676,302 | (351,667) |
Critical and Significant Accoun
Critical and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Pronouncements. | |
Critical and Significant Accounting Policies | 1. Critical and Significant Accounting Policies The preparation of Ball Corporation’s (collectively, Ball, the company, we or our) consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. These estimates are based on historical experience and various assumptions believed to be reasonable under the circumstances. Ball’s management evaluates these estimates on an ongoing basis and adjusts or revises the estimates as circumstances change. As future events and their impacts cannot be determined with precision, actual results may differ from these estimates. In the opinion of management, the financial statements reflect all adjustments necessary to fairly present the results of the periods presented. Critical Accounting Policies The company considers certain accounting policies to be critical, as their application requires management’s judgment about the impacts of matters that are inherently uncertain. Detailed below is a discussion of the accounting policies that management considers to be critical to the company’s consolidated financial statements. Acquisitions The company records acquisitions resulting in the consolidation of an enterprise using the purchase method of accounting. Under this method, the acquiring company records the assets acquired, including intangible assets that can be identified and named, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. If the assets acquired, net of liabilities assumed, are greater than the purchase price paid, then a bargain purchase has occurred and the company will recognize the gain immediately in earnings. Among other sources of relevant information, the company uses independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities. Various assumptions are used in the determination of these estimated fair values including discount rates, market and volume growth rates, product selling prices, production costs and other prospective financial information. Transaction costs associated with acquisitions are expensed as incurred and included in the business consolidation and other activities line of the consolidated statement of earnings. For acquisitions where the company already owns an equity investment in the acquired company, the company will recognize in earnings, upon the completion of the acquisition, a gain or loss related to the company’s existing equity investment. This gain or loss is calculated based on the fair value of the equity investment as compared to the carrying value of the existing equity investment on the date of acquisition. When the company purchases additional interests of consolidated subsidiaries that does not result in a change in control, the difference between the fair value and carrying value of the noncontrolling interests acquired is accounted for in the common stock line within shareholders' equity. Exit and Other Closure Costs (Business Consolidation Costs) The company estimates its liabilities for business closure activities by accumulating detailed estimates of costs and asset sale proceeds, if any, for each business consolidation initiative. This includes the estimated costs of employee severance, pension and related benefits; impairment of property and equipment and other assets, including estimates of net realizable value; accelerated depreciation; termination payments for contracts and leases; contractual obligations; and any other qualifying costs related to the exit plan. These estimated costs are grouped by specific projects within the overall exit plan and are then monitored on a monthly basis. Such charges represent management’s best estimates, however, they require assumptions about the plans that may change over time. Changes in estimates for individual locations and other matters are evaluated periodically to determine if a change in estimate is required for the overall restructuring plan. Subsequent changes to the original estimates are included in current earnings and identified as business consolidation gains or losses. Recoverability of Goodwill On an annual basis and at interim periods when circumstances require, the company tests the recoverability of its goodwill. The company compares the carrying value of each identified reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the company recognizes an impairment charge for the amount by which the carrying value exceeds the fair value. The company estimates fair value for each reporting unit primarily using the income approach. Under the income approach, fair value is estimated as the present value of estimated future cash flows of each reporting unit. The projected cash flows incorporate various assumptions related to weighted average cost of capital (WACC) and growth rates that are specific to each reporting unit, including assumptions relating to net sales growth rates, terminal growth rates and EBITDA (a non-U.S. GAAP measure defined by the company as earnings before interest, taxes, depreciation and amortization) margin. The company corroborates the results of its income approach using the market approach. Under the market approach, the company uses available information regarding multiples used in any recent market transactions involving transfer of controlling interests as well as publicly available trading multiples based upon the enterprise value of companies in either the packaging or aerospace and defense industries. The appropriate multiple is applied to forecasted EBITDA of each reporting unit to estimate fair value. Defined Benefit Pension Plans and Other Employee Benefits The company has defined benefit plans and postretirement plans that provide certain medical benefits and life insurance for retirees and eligible dependents and, to a lesser extent, participates in multi-employer defined benefit plans for which Ball is not the sponsor. For the company-sponsored plans, the relevant accounting guidance requires that management make certain assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, health care cost trend rates, mortality rates and other assumptions. The company believes the accounting estimates related to the company’s pension and postretirement plans are critical accounting estimates because they are highly susceptible to change from period to period based on the performance of plan assets, actuarial valuations, market conditions and contracted benefit changes. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by the company’s actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. The company recognizes the funded status of each defined benefit pension plan and other postretirement benefit plans in the consolidated balance sheet. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Pension plan obligations are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized on a straight-line basis from the date recognized over the average remaining service period of active participants or the average life expectancy for plans with significant inactive participants. For other postemployment benefits, the 10 percent corridor is not used. Costs related to defined benefit and other postretirement plans are included in cost of sales and selling, general and administrative expenses, while settlement and curtailment expenses are included in business consolidation expenses. Income Taxes Deferred income taxes reflect the future tax consequences of differences between the tax bases of assets and liabilities and their financial reporting amounts at each balance sheet date, based upon enacted income tax laws and tax rates. Income tax expense or benefit is provided based on earnings reported in the financial statements. The provision for income tax expense or benefit differs from the amounts of income taxes currently payable because certain items of income and expense included in the consolidated financial statements are recognized in different time periods by taxing authorities. Deferred tax assets, including operating loss, capital loss and tax credit carryforwards, are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that any portion of these tax attributes will not be realized. In addition, from time to time, management must assess the need to accrue or disclose uncertain tax positions for proposed adjustments from various federal, state and foreign tax authorities who regularly audit the company in the normal course of business. In making these assessments, management must often analyze complex tax laws of multiple jurisdictions, including many foreign jurisdictions. The accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The company records the related interest expense and penalties, if any, as tax expense in the tax provision. Derivative Financial Instruments The company uses derivative financial instruments for the purpose of hedging commercial risk exposures to fluctuations in interest rates, currency exchange rates, raw material costs and common share prices. The company’s derivative instruments are recorded in the consolidated balance sheets at fair value. The company values each derivative financial instrument either by using a single valuation technique based on observable market inputs performed internally or by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive earnings and subsequently reclassified into earnings when the hedged item affects earnings, unless it is probable that the forecasted transaction will not occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged, except for those activities that are hedging the effect of exchange rate changes on cash, which are presented in investing activities. Realized gains and losses from hedges are classified in the consolidated statements of earnings consistent with the accounting treatment of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive earnings until the originally hedged item affects earnings unless it is probable the hedged item will not occur at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. Contingencies The company is subject to various legal proceedings and claims, including those that arise in the ordinary course of business. The company records loss contingencies when it determines the outcome of the future event is probable of occurring and the amount of the loss can be reasonably estimated. Gain contingencies are recognized in the financial statements when they are realized or realizable. The determination of a reserve for a loss contingency is based on management’s judgment of probability and estimates with respect to the likelihood of an outcome and valuation of the future event. Liabilities are recorded or adjusted when events or circumstances cause these judgments or estimates to change. In assessing whether a loss is probable, Ball may consider the following factors, among others: the nature of the litigation, claim or assessment; available information, opinions or views of legal counsel and other advisors; and the experience gained from similar cases by the company and others. The company provides disclosures for material contingencies when there is a reasonable possibility that a loss or an additional loss may be incurred. Actual amounts realized upon settlement of contingencies may be different than amounts recorded and disclosed, and such adjustments could have a significant impact on the company's consolidated financial statements. Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Ball, its consolidated subsidiaries, and variable interest entities in which the company is considered to be the primary beneficiary. Equity investments in which the company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method of accounting. Investments in which the company neither exercises significant influence over the investee, nor is the primary beneficiary of the investment, are accounted for using the cost method of accounting. Intercompany transactions are eliminated in consolidation. Reclassifications Certain prior year amounts have been reclassified in order to conform to the current year presentation. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. Inventories Inventories are stated at the lower of cost or market using either the first-in, first-out (FIFO) cost method of accounting or the average cost method. Inventory cost is calculated for each inventory component taking into consideration the appropriate cost factors including fixed and variable overhead, material price volatility and production levels. Impairment of Long-Lived Assets We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset or asset group may not be recoverable based on the undiscounted future cash flows of the asset. The company reviews long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified. If the carrying amount of the asset or asset group is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows or with the assistance of external appraisals, as applicable. Depreciation and Amortization Property, plant and equipment are carried at the cost of acquisition or construction. Repairs and maintenance costs, including labor and material costs for major improvements such as annual production line overhauls, are expensed as incurred, unless those costs substantially increase the useful lives or capacity of the existing assets. Assets are depreciated and amortized using the straight-line method over their estimated useful lives, generally 5 to 40 years for buildings and improvements and 2 to 20 years for machinery and equipment. Finite-lived intangible assets, excluding capitalized software costs, are generally amortized over their estimated useful lives of 3 to 18 years. Capitalized software is generally amortized over estimated useful lives of 3 to 7 years. The company periodically reviews these estimated useful lives and when appropriate, changes are made prospectively. For certain business consolidation activities, accelerated depreciation may be required for the revised remaining useful life for assets designated to be scrapped or abandoned. The accelerated depreciation related to such activities is disclosed as part of business consolidation and other activities in the appropriate period. Environmental Reserves The company estimates its liability for environmental matters based on, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. The company records the best estimate of a loss when the loss is considered probable. As additional information becomes available, the company reassesses the potential liability related to pending matters and revises the estimates. Revenue Recognition in the Beverage and Aerosol Packaging Segments The company recognizes sales of products in its packaging segments when a customer obtains control of promised goods or services, which generally occurs upon shipment or delivery of goods. The company elected to apply the modified retrospective method to all contracts that were not completed as of January 1, 2018. The cumulative effect of initially applying the new revenue standard was recognized as an adjustment to the company’s retained earnings balance as of January 1, 2018. Comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. For sales recognized in 2017, the company recognized sales of products in its packaging segments when the four basic criteria of the former guidance on revenue recognition were met: delivery had occurred, title had transferred, there was persuasive evidence of an agreement or arrangement and the price was fixed or determinable and collection was reasonably assured. At contract inception, the company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer goods or services to the customer. The performance obligation may be represented by a good or service (or a series of goods or services) that is distinct, or by a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. In each instance, the company treats the promise to transfer the customer goods or services as a single performance obligation. To identify its performance obligations, the company considers all of the goods or services promised in the contract, regardless of whether they are explicitly stated or are implied by customary business practices. The company has determined that the following distinct goods and services represent separate performance obligations: ● Manufacture of beverage cans, which may be generic or unique; ● Manufacture of aerosol containers, which may be generic or unique; and ● Manufacture of beverage and aerosol lids and ends, which may be generic or unique. Performance obligations for products with no alternative use are recognized over time when the company has manufactured a unique item and has an enforceable right to payment. Conversely, generic products with alternative use are recognized at a point in time. Contracts may be short-term or long-term, with varying payment terms. Ball’s payment terms vary by the type and location of the customer and the products or services offered. Customers pay in accordance with negotiated terms, which are typically triggered upon ownership transfer. All payment terms are less than one year. For all contracts, the transaction price is determined upon establishment of the contract that contains the final terms of the sale, including the description, quantity, and price of each product or service purchased. In the context of the revenue recognition standard, enforceable contracts are those that have an enforceable right to payment, which Ball typically has once a binding forecast or purchase order (or similar evidence) is in place and Ball produces under the contract. Within Ball’s packaging segments, enforceable contracts as defined all have a duration of less than one year. Contracts that have an original duration of less than one year are excluded from the requirement to disclose remaining performance obligations, based on the company’s election to use the practical expedient. The nature of the remaining performance obligations within these contracts, as well as the nature of the variability and how it will be resolved, are described in the section below. Within the company’s beverage and aerosol operations, performance obligations are recognized both over time and at a point in time. The determination that sales should be recognized at a point in time most often results from the existence of an alternative use for the product. Cans and ends that are not customized for a customer prior to delivery are considered to have an alternative use, and sales are recognized at the point of control transfer. Determining when control transfer occurs requires management to make judgments that affect the timing of when sales are recognized. The new revenue accounting standard provides five indicators that a customer has obtained control of an asset: 1) present right to payment; 2) transfer of legal title; 3) physical possession; 4) significant risks and rewards of ownership; and 5) customer acceptance. The company considers control to have transferred for these products upon shipment or delivery, depending on the legal terms of the contract, because the company has a present right to payment at that time, the customer has legal title to the asset, the company has transferred physical possession of the asset and/or the customer has significant risks and rewards of ownership of the asset. The company determines that control transfers to a customer as described above and provides a faithful depiction of the transfer of goods. For performance obligations related to products that are specialized with no alternative use (e.g., specialized sizes or customer-specific materials, or labeled with customer-specific artwork), the company transfers control and records sales over time. The recognition of sales occurs over time as goods are manufactured and Ball has an enforceable right to payment for those goods, which is an output method. Determining a measure of progress requires management to make judgments that impact the timing of when sales are recognized. The company has determined the above provides a faithful depiction of the transfer of goods to the customer. The number of units manufactured that have an enforceable right to payment is the best measure of depicting the company’s performance as control is transferred. The customer obtains value as each unit is produced against a binding contract. The enforceable right to payment may be explicit or implied in the contract. If the enforceable right to payment is not explicit in the contract, Ball must consider if there is an implied right based on customer relationships or previous business practices and applicable law. Typically, Ball has an enforceable right to payment of costs plus a reasonable margin once a binding forecast or purchase order (or similar evidence) is in place and Ball produces under the contract. In making its determination of stand-alone selling price, Ball maximizes its use of observable inputs. Stand-alone selling price is then used to allocate total consideration proportionally to the various performance obligations within a contract. To estimate variable consideration, the company may apply both the “expected value” method and “most likely amount” method based on the form of variable consideration, after considering which method would provide the best prediction of consideration to be received from the company’s customers. The expected value method involves a probability-weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. In certain cases, both methods may be used within a single contract if multiple forms of variable consideration exist. However, once a method has been applied to one form of variable consideration, it is applied consistently throughout the contract term. The primary types of variable consideration present in the company’s contracts are per-unit price changes, volume discounts and rebates. Once variable consideration has been estimated, it will be constrained if a significant reversal of the cumulative amounts of sales is probable in the context of the contract. Revenue Recognition in the Aerospace Segment Sales under fixed-price long-term contracts in the aerospace segment are primarily recognized using percentage-of-completion accounting under the cost-to-cost method. The company elected to apply the modified retrospective method to all contracts that were not completed as of January 1, 2018. The cumulative effect of initially applying the new revenue standard was recognized as an adjustment to the company’s retained earnings balance as of January 1, 2018. Comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Sales in 2017 from the majority of the company’s aerospace business contracts were recognized over time under the cost-to-cost method based on the continuous transfer of control to the customer, which is consistent with the new revenue accounting standard and related amendments. At contract inception, the company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer goods or services to the customer. The performance obligation may be represented by a good or service (or a series of goods or services) that is distinct, or by a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. In each of these scenarios, the company treats the promise to transfer the customer goods or services as a single performance obligation. To identify its performance obligations, the company considers all of the goods or services promised in the contract, regardless of whether they are explicitly stated or are implied by customary business practices. The company has determined that the following distinct goods and services represent separate performance obligations: ● Manufacture and delivery of distinct spacecraft and/or hardware components; ● Research reports, for contracts where such reports are the sole or primary deliverable; ● Design, add-on, or special studies for contracts where such studies have stand-alone value or a material right exists due to discounted pricing; and ● Warranty and performance guarantees beyond standard repair/replacement. Performance obligations with no alternative use are recognized over time, when the company has an enforceable right to payment for efforts completed to-date. Because of sales contract payment schedules, limitations on funding, and contract terms, the company’s sales and accounts receivable generally include amounts that have been earned but not yet billed. The company’s payment terms vary by the type and location of the company’s customer and the products or services offered. All payment terms are less than one year. Contracts are often modified to account for changes in contract specifications and requirements. The company considers contract modifications to exist when the modification either creates new or revised enforceable rights and obligations. Most of the company’s contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract, and such contract modifications are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and the company’s measure of progress for the performance obligation to which it relates, is recognized as an adjustment to sales (either as an increase or reduction of sales) on a cumulative catch-up basis. Within the aerospace segment, performance obligations are recognized over time. Aerospace contracts involve specialized and unique products that are tailored to the specific needs of the customer, such as a spacecraft or other hardware conforming to the specifications required by the customer, and as such, no alternative use exists. When there is an enforceable right to payment at cost plus reasonable margin for performance completed to date, the sales are recorded over time as the goods are manufactured or services are performed. Determining a measure of progress requires management to make judgments that affect the timing of recording sales. Sales under long-term contracts in the aerospace segment are primarily recognized using percentage-of-completion accounting under the cost-to-cost method, which is an input method. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date versus the total estimated costs upon completion of the performance obligation. The cost-to-cost method best depicts the transfer of assets to the customer as the company incurs costs on the company’s contracts. The percentage-of-completion method of accounting involves the use of various estimating techniques to project revenues and costs at completion and various assumptions and projections relative to the outcome of future events, including the quantity and timing of product deliveries, future labor performance and rates, and material and overhead costs. Throughout the period of contract performance, the company regularly evaluates and, if necessary, revises estimates of total contract revenue, total contract cost, and extent of progress toward completion. The two primary types of long-term sales contracts utilized are cost-type contracts, which are agreements to perform for cost plus an agreed-upon profit component, and fixed price sales contracts, which are completed for a fixed price. Cost-type sales contracts can have different types of fee arrangements, including fixed-fee, cost, milestone and performance incentive fees, award fees or a combination thereof. At the inception of contract performance, the company estimates sales associated with base, incentive and other fees exclusive of any constraint. In other words, the company estimates sales to the extent that it is not probable a significant reversal will occur over the period of contract performance. The company has determined that the above provides a faithful depiction of the transfer of goods to the customer and is the best measure of depicting the company’s performance as control is transferred to customers. Due to the unique and customized nature of deliverables within aerospace contracts, a readily observable selling price for a similar good is not typically available; therefore, in making its determination of stand-alone selling price, the company generally applies the “expected cost plus a margin” approach (whereby the transaction price is allocated based on the relative amount of costs plus an appropriate margin). Use of the expected cost plus a margin approach requires Ball to determine the expected costs for each performance obligation, as well as an appropriate margin (i.e., cost-to-cost percentage of completion). The calculation is made at contract inception to determine the allocation of consideration. Uncertainty as to the total amount that will be paid by the customer (such as the exact amount of costs that will be incurred and fees that will be earned by us to satisfy the contractual requirements) gives rise to variable consideration. To estimate variable consideration, the company applies the “most likely amount” method or the “expected value” method depending on the nature of the variable consideration. In certain cases, both methods may be used within a single contract if multiple forms of variable consideration exist. However, once a method has been applied to one form of variable consideration, it is applied consistently throughout the contract term. The primary types of variable consideration present in the company’s contracts are cost reimbursemen |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Pronouncements | |
Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Standards New Lease Accounting Guidance In February 2016, lease accounting guidance was issued which, for operating leases, requires a lessee to recognize a right-of-use (ROU) asset and a lease liability. The guidance also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight line basis. On January 1, 2019, Ball adopted the new guidance and all related amendments (the new lease standard), applying the modified not As part of adopting the new lease standard, Ball has made the following elections: ● To carry forward the historical lease determination and classification conclusions as established under the old standard, and not reassess initial direct costs for existing leases; ● To carry forward its historical accounting treatment for land easements on existing agreements; ● Not to apply the balance sheet recognition requirements of the new lease standard to leases with a term of one year or less (short-term leases); and ● For all classes of underlying assets, to account for non-lease components of a contract as part of the single lease component to which they are related. The adoption of the new lease standard resulted in the following impacts on the company’s consolidated balance sheets: ($ in millions) Balance at December 31, 2018 Adjustments Due to Adoption Balance at January 1, 2019 Assets: Other current assets $ 140 $ (1) $ 139 Operating lease right-of-use assets (a) — 244 244 Other assets 1,409 (25) 1,384 Liabilities: Other current liabilities $ 492 $ (3) $ 489 Current operating lease liabilities (b) — 53 53 Other liabilities 287 (14) 273 Noncurrent operating lease liabilities (b) — 182 182 (a) Operating lease right-of-use assets are recognized within other assets in Ball’s consolidated balance sheets. (b) Current and noncurrent operating lease liabilities are recognized within other current liabilities and other liabilities, respectively, in Ball’s consolidated balance sheets. Ball’s adoption of the new lease standard had an immaterial impact on Ball’s results of operations in the consolidated statements of earnings; an immaterial impact on Ball’s cash flows from operating, financing, and investing activities in the consolidated statements of cash flows and no impact on Ball’s opening retained earnings balance. Ball’s accounting for finance leases remains substantially unchanged as a result of the adoption. See Note 14 for further details regarding Ball’s leases. Stranded Tax Effects In February 2018, accounting guidance was issued to permit the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act signed into law in December 2017. Ball adopted this guidance on January 1, 2019, and an election was made to reclassify on the first day of the period of adoption. The total tax amount reclassified was $79 million. Remaining stranded tax amounts in accumulated other comprehensive income, which are unrelated to the U.S. Tax Cuts and Jobs Act, are not significant and will be reclassified to the income statement when the activity leading to the deferral of gains and losses has ceased in full. New Accounting Guidance Income Tax Simplification In December 2019, accounting guidance was issued to simplify the accounting for income taxes. The guidance is effective for Ball on January 1, 2021, and the company is currently assessing the impact that the adoption of this new guidance will have on its consolidated financial statements. Cloud Computing Arrangements In August 2018, amendments to existing accounting guidance were issued to clarify the accounting for implementation costs for cloud computing arrangements. The amendments specify that existing guidance for capitalizing implementation costs incurred to develop or obtain internal-use software also applies to implementation costs incurred in a hosting arrangement that is a service contract. The guidance is effective for Ball on January 1, 2020, and will not have a material effect on the company’s consolidated financial statements. Financial Assets Amendments to existing guidance were issued in June 2016, followed by improvements and transition relief in 2018 and 2019, requiring financial assets or a group of financial assets measured at amortized cost basis to be presented at the net amount expected to be collected when finalized. The allowance for credit losses is a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. This guidance is expected to primarily affect Ball’s trade receivables; however, the guidance applies to other financial assets as well. The guidance is effective for Ball on January 1, 2020, and will not have a material effect on the company’s consolidated financial statements. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Business Segment Information | |
Business Segment Information | 3. Business Segment Information Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the four reportable segments outlined below: Beverage packaging, North and Central America : Beverage packaging, South America : Beverage packaging, Europe : Aerospace : As presented in the tables below, Other consists of non-reportable segments located in Africa, Middle East and Asia (beverage packaging, AMEA) and Asia Pacific (beverage packaging, Asia Pacific) that manufacture and sell metal beverage containers; a non-reportable segment that manufactures and sells aerosol containers, extruded aluminum aerosol containers and aluminum slugs (aerosol packaging); undistributed corporate expenses; intercompany eliminations and other business activities. The accounting policies of the segments are the same as those in the consolidated financial statements, as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, South Korea, the U.S. and Vietnam that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. Beginning in January 2020, Ball has changed how the beverage packaging, AMEA, and beverage packaging, Asia Pacific, operating segments are being managed and reported for the purposes of cost reduction and operational efficiency. The plants in Cairo, Egypt, and Manisa, Turkey, will be consolidated with the existing reportable beverage packaging, Europe, operating segment. The company’s operations in India and Saudi Arabia will be managed with the remainder of the beverage packaging, Asia Pacific, operating segment resulting in a new non-reportable beverage packaging, other, operating segment. The 2019 results for the Aluminum Cups business were reported in undistributed corporate expenses. Beginning in January 2020, the Aluminum Cups business will be a non-reportable operating segment. These changes will be reflected in the segment financial reporting beginning the first quarter of 2020 including comparative historical periods. Major Customers Net sales to major customers, as a percentage of consolidated net sales, were as follows: 2019 2018 2017 U.S. Government 13 % 10 % 9 % Anheuser-Busch InBev and affiliates 12 % 13 % 14 % Coca-Cola Bottlers' Sales & Services Company LLC and affiliates 9 % 12 % 11 % Summary of Net Sales by Geographic Area (a) ($ in millions) U.S. Brazil Other Consolidated 2019 $ 5,747 $ 1,351 $ 4,376 $ 11,474 2018 5,783 1,380 4,472 11,635 2017 5,496 1,427 4,060 10,983 (a) Revenue is attributed based on origin of sale and includes intercompany eliminations. Summary of Net Long-Lived Assets by Geographic Area (a) ($ in millions) U.S. Brazil U.K. Other Consolidated As of December 31, 2019 $ 2,024 $ 750 $ 626 $ 2,655 $ 6,055 As of December 31, 2018 1,708 865 701 2,677 5,951 (a) Long-lived assets exclude goodwill and intangible assets. Summary of Business by Segment Years Ended December 31, ($ in millions) 2019 2018 2017 Net sales Beverage packaging, North and Central America $ 4,758 $ 4,626 $ 4,178 Beverage packaging, South America 1,670 1,701 1,692 Beverage packaging, Europe 2,651 2,619 2,360 Aerospace 1,479 1,196 991 Reportable segment sales 10,558 10,142 9,221 Other 916 1,493 1,762 Net sales $ 11,474 $ 11,635 $ 10,983 Comparable operating earnings Beverage packaging, North and Central America $ 555 $ 551 $ 533 Beverage packaging, South America 288 313 333 Beverage packaging, Europe 308 282 233 Aerospace 140 113 98 Reportable segment comparable operating earnings 1,291 1,259 1,197 Reconciling items Other (a) 40 31 23 Business consolidation and other activities (244) (191) (221) Amortization of acquired Rexam intangibles (155) (164) (162) Catch-up depreciation and amortization for 2016 from finalization of Rexam valuation — — (35) Earnings before interest and taxes 932 935 802 Interest expense (317) (301) (285) Debt refinancing and other costs (7) (1) (3) Total interest expense (324) (302) (288) Earnings before taxes 608 633 514 (a) Includes undistributed corporate expenses, net, of $54 million, $85 million and $128 million for the years ended December 2019, 2018 and 2017, respectively. Years Ended December 31, ($ in millions) 2019 2018 2017 Depreciation and amortization (a) Beverage packaging, North and Central America $ 190 $ 184 $ 179 Beverage packaging, South America 136 131 144 Beverage packaging, Europe 231 238 254 Aerospace 43 33 31 Reportable segment depreciation and amortization 600 586 608 Other 78 116 121 Depreciation and amortization $ 678 $ 702 $ 729 Capital expenditures Beverage packaging, North and Central America $ 139 $ 322 $ 283 Beverage packaging, South America 150 106 36 Beverage packaging, Europe 144 194 81 Aerospace 96 130 70 Reportable segment capital expenditures 529 752 470 Other 69 64 86 Capital expenditures $ 598 $ 816 $ 556 (a) Includes amortization of acquired Rexam intangibles. 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 | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and Dispositions | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions Argentina Steel Aerosol Business In October 2019, the company sold its Argentina steel aerosol packaging business, which included facilities in Garin and San Luis, Argentina, and recorded a loss on disposal of $52 million, which included the write-off of cumulative translation adjustments of $45 million related to the Argentina business that had been previously recorded in accumulated other comprehensive income. The loss on disposal has been presented in business consolidation and other activities in the company’s consolidated statements of earnings. Beverage Packaging China In September 2019, the company completed the sale of its metal beverage packaging business in China for upfront consideration of approximately $213 million, subject to customary closing adjustments, plus potential additional consideration related to the relocation of an existing facility in China in the coming years. The upfront proceeds from this sale were received in the fourth quarter of 2019; the potential additional consideration is included in other long-term assets. The company recorded a loss on disposal of $45 million in business consolidation and other activities in the consolidated statement of earnings. U.S. Steel Food and Steel Aerosol Business On July 31, 2018, Ball sold its U.S. steel food and steel aerosol packaging business and formed a joint venture, Ball Metalpack. In exchange for the sale of this business, Ball received approximately $600 million of cash proceeds, subject to customary closing adjustments completed as of December 31, 2018, as well as a 49 percent ownership interest in Ball Metalpack. This investment is reported in other assets as an equity method investment on the company’s consolidated balance sheet. Ball recorded a loss of $41 million upon completion of the sale. This loss was recorded in business consolidation business |
Revenue from Contracts With Cus
Revenue from Contracts With Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer | |
Revenue from Contracts with Customers | 5. Revenue from Contracts with Customers The following table disaggregates the company’s net sales based on the timing of transfer of control: Year Ended December 31, 2019 ($ in millions) Point in Time Over Time Total Total net sales $ 2,220 $ 9,254 $ 11,474 Year Ended December 31, 2018 ($ in millions) Point in Time Over Time Total Total net sales $ 2,634 $ 9,001 $ 11,635 The company did not have any contract assets at either December 31, 2019, or December 31, 2018. 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, 2017 $ 45 $ — Increase — 8 Balance at December 31, 2018 $ 45 $ 8 Increase 42 1 Balance at December 31, 2019 $ 87 $ 9 During the year ended December 31, 2019, contract liabilities increased by $43 million, which is net of cash received of $254 million and amounts recognized as sales of $211 million, all of which related to current contract liabilities. The amount of sales recognized during the year ended December 31, 2019, that were included in the company’s opening contract liabilities balance was $45 million, all of which related to current contract liabilities. The difference between the opening and closing balances of the company’s contract liabilities primarily results from timing differences between the company’s performance and the customer’s payment. Current contract liabilities are classified within other current liabilities on the consolidated balance sheet and noncurrent contract liabilities are classified within other liabilities. The company also recognized sales of $15 million and $18 million during the years ended December 31, 2019 and 2018, respectively, from performance obligations satisfied (or partially satisfied) in prior periods. These sales amounts are the result of changes in the transaction price of the company’s contracts with customers. Transaction Price Allocated to Remaining Performance Obligations The table below discloses: (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period, for those contracts with an original duration of at least one year, and (2) when the company expects to record sales on these multi-year contracts. ($ in millions) Next Twelve Months Thereafter Total Sales expected to be recognized on multi-year contracts in place as of December 31, 2019 $ 1,409 $ 1,067 $ 2,476 The contracts with an original duration of less than one year, which are excluded from the table above based on the company’s election of the practical expedient, are primarily related to contracts where control will be fully transferred to the customers in less than one year. The nature of the remaining performance obligations within these contracts, as well as the nature of the variability and how it will be resolved, are described in Note 1. |
Business Consolidation and Othe
Business Consolidation and Other Activities | 12 Months Ended |
Dec. 31, 2019 | |
Business Consolidation and Other Activities | |
Business Consolidation and Other Activities | 6. Business Consolidation and Other Activities Following is a summary of business consolidation and other activity (charges) income included in the consolidated statements of earnings: Years Ended December 31, ($ in millions) 2019 2018 2017 Beverage packaging, North and Central America $ (14) $ (6) $ (47) Beverage packaging, South America 15 11 (5) Beverage packaging, Europe (39) (49) (89) Other (206) (147) (80) $ (244) $ (191) $ (221) 2019 Beverage Packaging, North and Central America During 2019, the company recorded charges of $8 million for revised estimates of charges recorded in prior periods in connection with the previously announced closures of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. The Birmingham facility ceased production during the second quarter of 2018, and the Chatsworth and Longview facilities ceased production during the third quarter of 2018. Ball sold the Chatsworth facility during the fourth quarter of 2018. Other income and charges in 2019 included $6 million of expense for individually insignificant activities. Beverage Packaging, South America During 2019, the company recorded a $57 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 23 for further details. The amounts recorded in business consolidation and other activities relate to periods prior to 2019. In the event other comparable cases are resolved and the amounts claimed become estimable and realizable, the company will record gains, which may result in material reimbursements to the company in future periods. The company recorded charges of $29 million in 2019 related to asset impairments, accelerated depreciation and inventory impairments related to plant closures and restructuring activities. Other charges in 2019 included $13 million of expense for individually insignificant activities. Beverage Packaging, Europe During 2019, the company recorded charges of $26 million for asset impairments, accelerated depreciation and inventory impairments related to previously announced plant closures and restructuring activities. Other charges in 2019 included $13 million of expense for individually insignificant activities. Other During 2019, the company recorded the following amounts: ● A $45 million loss on the sale of the metal beverage packaging business in China and charges of $18 million for estimated employee severance costs and professional services associated with the sale. ● A loss of $52 million related to the sale of the Argentina steel aerosol packaging business including $45 million related to cumulative translation adjustments previously recorded in accumulated other comprehensive earnings. ● A $64 million impairment charge related to certain property, plant and equipment, intangible assets and other assets of the company’s Saudi Arabian beverage packaging business (of which Ball owns 51 percent). See Note 10 for further details. ● A settlement loss of $8 million primarily related to the purchase of non-participating group annuity contracts to settle the projected pension benefit obligations in Ball’s Canadian defined benefit pension plan which triggered settlement accounting. The settlement loss primarily represents the aggregate unamortized actuarial loss in this pension plan. ● Charges of $19 million for individually insignificant activities. 2018 Beverage Packaging, North and Central America During 2018, the company recorded $12 million of expense for employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs in connection with the previously announced closures of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. The Birmingham facility ceased production during the second quarter of 2018, and the Chatsworth and Longview facilities ceased production during the third quarter of 2018. Ball sold the Chatsworth facility during the fourth quarter of 2018 and recorded a gain of $18 million. The company recorded charges of $2 million in 2018 related to the closure of its Reidsville, North Carolina, facility, which ceased production in 2017. Other income and charges in 2018 included $10 million of expense for individually insignificant activities. Beverage Packaging, South America During 2018, the company recorded an $18 million gain related to indirect tax contingencies in Brazil as these amounts were determined to have been realized. As referenced above, 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 as a result of a tax on a tax being charged. The company recorded charges of $4 million in 2018 related to employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs related to restructuring activities, including the Cuiabá, Brazil facility closure. Other charges in 2018 included $3 million of expense for individually insignificant activities. Beverage Packaging, Europe During 2018, the company recorded charges of $18 million for employee benefits, severance, facility shutdown costs and other costs in connection with the closure of its Recklinghausen, Germany, facility which ceased production during the third quarter of 2017. In the fourth quarter of 2018, the company closed its beverage packaging manufacturing facility in San Martino, Italy and recorded charges of $26 million related to employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs. Other charges in 2018 included $5 million of expense for individually insignificant activities. Other During 2018, the company recorded the following amounts: ● A $41 million loss on the sale of the U.S. steel food and steel aerosol packaging business. ● A pension settlement loss of $36 million primarily related to the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans and to lump sums paid to certain retirees. ● Charges of $23 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition. ● Charges of $15 million for professional services and other costs associated with the sale of the U.S. steel food and steel aerosol packaging business and the proposed sale of the beverage packaging China business. ● Charges of $4 million for employee severance and benefits, accelerated depreciation and inventory impairment related to manufacturing cost rationalization in the former food and aerosol packaging segment. ● Charges of $2 million for the estimated amount of claims covered by the indemnification for certain tax matters provided to the buyer in the sale of the Divestment Business. ● Charges of $26 million for individually insignificant activities. 2017 Beverage Packaging, North and Central America During 2017, the company recorded charges of $29 million for employee severance and benefits and $4 million for facility shutdown costs, asset impairment, accelerated depreciation and other costs in connection with the announced closures of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. All three locations ceased production during 2018. During 2017, the company recorded charges of $9 million for employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs related to the closure of its Reidsville, North Carolina, facility. Other charges in 2017 included $5 million of individually insignificant activities. Beverage Packaging, South America Charges in 2017 included $3 million of professional services and other costs associated with the Rexam acquisition and $2 million for individually insignificant activities. Beverage Packaging, Europe During 2017, the company recorded charges of $59 million for employee severance and benefits and $22 million for facility shutdown costs, asset impairment, accelerated depreciation and other costs in connection with the closure of its Recklinghausen, Germany, facility, which ceased production during the third quarter of 2017. During 2017, the company recorded charges of $4 million for professional services and other costs associated with the acquisition of Rexam. Other charges in 2017 included $4 million for individually insignificant activities. Other During 2017, the company recorded the following amounts: ● A settlement loss of $44 million primarily related to the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans, which triggered settlement accounting. The settlement loss primarily represented a pro rata portion of the aggregate unamortized actuarial loss in these pension plans. ● Charges of $34 million for the estimated amount of claims covered by the indemnification for certain tax matters provided to the buyer in the sale of the Divestment Business. ● Charges of $25 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition. ● A $55 million gain recognized in connection with the sale of the Ball portion of the Divestment Business. ● Charges of $12 million for professional services and other costs associated with the Rexam acquisition. ● Charges of $7 million for facility shutdown costs and accelerated depreciation for the closure of its food and aerosol packaging facility located in Weirton, West Virginia, which ceased production during the second quarter of 2017. ● A gain of $15 million related to the sale of its food and aerosol packaging paint and general line can facility in Hubbard, Ohio. ● Charges of $28 million for individually insignificant activities. |
Supplemental Cash Flow Statemen
Supplemental Cash Flow Statement Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Statement Disclosures | |
Supplemental Cash Flow Statement Disclosures | 7. Supplemental Cash Flow Statement Disclosures December 31, ($ in millions) 2019 2018 Beginning of period: Cash and cash equivalents $ 721 $ 448 Current restricted cash (included in other current assets) 7 10 Noncurrent restricted cash (included in other assets) — 1 Total cash, cash equivalents and restricted cash $ 728 $ 459 End of period: Cash and cash equivalents $ 1,798 $ 721 Current restricted cash (included in other current assets) 8 7 Total cash, cash equivalents and restricted cash $ 1,806 $ 728 The company’s restricted cash is primarily related to receivables factoring programs and represents amounts collected from customers but not yet 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 $224 million and $127 million at December 31, 2019 and 2018, respectively. In connection with the sale of a business associated with the June 2016 acquisition of Rexam, the company provided indemnifications for uncertain tax positions associated with the business. During 2018, the company made payments of $45 million in relation to these liabilities and reported them within investing activities in the consolidated statement of cash flows. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables, Net | |
Receivables, Net | 8. Receivables, Net December 31, December 31, ($ in millions) 2019 2018 Trade accounts receivable $ 647 $ 812 Unbilled receivables 556 478 Less allowance for doubtful accounts (17) (10) Net trade accounts receivable 1,186 1,280 Other receivables 445 522 $ 1,631 $ 1,802 Net accounts receivable under long-term contracts, due primarily from agencies of the U.S. government and their prime contractors, were $247 million and $240 million at December 31, 2019 and 2018, respectively, and included $164 million at each period end, representing the recognized sales value of performance that was not yet billable to customers. The average length of the long-term contracts is approximately 2.75 years, and the average length remaining on those contracts at December 31, 2019, was one year . At December 31, 2019, $247 million of net accounts receivables is expected to be collected within the next year and is related to customary fees and cost withholdings that will be paid upon milestone or contract completions, as well as final overhead rate settlements. Other receivables include income and sales tax receivables, related party receivables and other miscellaneous receivables. The company has entered into several regional uncommitted and committed accounts receivable factoring programs with various financial institutions for certain receivables of the company. Programs accounted for as true sales of the receivables, without recourse to Ball, had combined limits of approximately $1.4 billion and $1.2 billion at December 31, 2019 and 2018, respectively. A total of $230 million and $178 million were available for sale under these programs as of December 31, 2019 and 2018, respectively. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2019 | |
Inventories, Net | |
Inventories, Net | 9. Inventories, Net December 31, December 31, ($ in millions) 2019 2018 Raw materials and supplies $ 808 $ 727 Work-in-process and finished goods 548 614 Less: Inventory reserves (82) (70) $ 1,274 $ 1,271 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net. | |
Property, Plant and Equipment, Net | 10. Property, Plant and Equipment, Net December 31, December 31, ($ in millions) 2019 2018 Land $ 153 $ 159 Buildings 1,433 1,359 Machinery and equipment 5,513 5,250 Construction-in-progress 434 509 7,533 7,277 Accumulated depreciation (3,063) (2,735) $ 4,470 $ 4,542 Property, plant and equipment are stated at historical or acquired cost. Depreciation expense amounted to $491 million, $498 million and $509 million for the years ended December 31, 2019, 2018 and 2017, respectively. As discussed in Note 6, Ball recorded an impairment charge in 2019 related to its Saudi Arabian beverage packaging business (of which Ball owns 51 percent). The impairment charge was recorded in the fourth quarter of 2019 and was triggered by the loss of a major customer for this business in December 2019. The loss of volumes led management to perform impairment tests for long-lived assets and goodwill for the beverage AMEA reporting unit. The impairment reviews led to the recognition of non-cash impairment charges totaling $64 million, which primarily related to property, plant and equipment and intangible assets. This impairment charge was recorded in business consolidation and other activities in the company’s consolidated statement of earnings. The fair value of the impacted long-lived assets was estimated using an income approach. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets, Net | |
Goodwill | 11. Goodwill ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2017 $ 1,275 $ 1,299 $ 1,531 $ 40 $ 788 $ 4,933 Opening balance sheet adjustments — — 4 — — 4 Business dispositions — — — — (354) (354) Effects of currency exchange — — (100) — (8) (108) Balance at December 31, 2018 $ 1,275 $ 1,299 $ 1,435 $ 40 $ 426 $ 4,475 Opening balance sheet adjustments — (1) — — — (1) Business dispositions — — — — (52) (52) Effects of currency exchange — — (2) — (1) (3) Balance at December 31, 2019 $ 1,275 $ 1,298 $ 1,433 $ 40 $ 373 $ 4,419 During 2019, the company completed the sales of its China beverage packaging and Argentina steel aerosol businesses, which included $51 million and $1 million of goodwill, respectively, related to these businesses. The remaining goodwill balance associated with the beverage packaging, Asia Pacific, reporting unit (which is included in “Other” in the above table) was $27 million as of December 31, 2019. During the third quarter of 2018, the company sold its U.S. steel food and steel aerosol business, which resulted in a $354 million decrease in goodwill. The company’s annual goodwill impairment test completed as of October 1, 2019, indicated the fair value of the beverage packaging, AMEA (beverage AMEA), reporting unit, exceeded its carrying amounts by approximately 35 percent. Management’s cash flow projections for the beverage AMEA reporting unit included significant judgments and assumptions relating to net sales, terminal growth rates, EBITDA margin and the weighted average cost of capital. As discussed in Note 10, the company’s Saudi Arabia beverage packaging business lost a major customer in December 2019, and this loss of volumes led management to perform additional impairment tests for long-lived assets and goodwill for the beverage AMEA reporting unit. The impairment reviews led to the recognition of non-cash impairment charges totaling $64 million, which primarily related to property, plant and equipment and intangible assets. The trigger-based impairment review did not result in an impairment of goodwill for the beverage AMEA reporting unit. As discussed in Note 3, beginning in January 2020, Ball has changed how its beverage packaging, AMEA, and beverage packaging, Asia Pacific, operating segments are being managed and reported. These operating segments had goodwill balances of $102 million and $27 million, respectively, as of December 31, 2019. These changes will result in the creation of a new beverage packaging, other, operating segment and reporting unit, and goodwill of $62 million will be allocated to this new beverage packaging, other, reporting unit. Based on the information available at this time, it is reasonably possible that the company will be required to record a non-cash impairment charge for some or all of the goodwill associated with this reporting unit in the first quarter of 2020, as the carrying amount of this reporting unit may exceed its fair value. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets, Net | |
Intangible Assets, Net | 12. Intangible Assets, Net December 31, December 31, ($ in millions) 2019 2018 Acquired Rexam customer relationships and other Rexam intangibles (net of accumulated amortization of $567 million at December 31, 2019, and $399 million at December 31, 2018) $ 1,909 $ 2,073 Capitalized software (net of accumulated amortization of $170 million at December 31, 2019, and $148 million at December 31, 2018) 69 82 Other intangibles (net of accumulated amortization of $116 million at December 31, 2019, and $112 million at December 31, 2018) 24 33 $ 2,002 $ 2,188 Total amortization expense of intangible assets amounted to $187 million, $204 million and $220 million for the years ended December 31, 2019, 2018 and 2017, respectively, including $155 million in 2019, $164 million in 2018 and $162 million in 2017 of amortization expense related to the acquired intangible assets from Rexam. Based on intangible asset values and currency exchange rates as of December 31, 2019, total annual intangible asset amortization expense is expected to be $185 million, $173 million, $167 million, $160 million and $156 million for the years ending December 31, 2020 through 2024, respectively, and approximately $1.2 billion combined for all years thereafter. Ball recorded an impairment charge in 2019 related to certain intangible assets of its Saudi Arabian beverage packaging business. See Notes 6 and 10 for further details. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets.. | |
Other Assets. | 13. Other Assets December 31, December 31, ($ in millions) 2019 2018 Long-term deferred tax assets $ 241 $ 237 Long-term pension assets 437 559 Investments in affiliates 291 302 Right-of-use operating lease assets 239 — Other 377 311 $ 1,585 $ 1,409 Investments in affiliates primarily includes the company’s 40 percent ownership interest in an entity in South Korea, a 50 percent ownership interest in an entity in Guatemala, a 50 percent ownership interest in an entity in Panama, a 50 percent ownership interest in an entity in Vietnam and ownership interests of 50 percent and 49 percent in entities in the U.S. See Notes 16 and 17 for further details related to the company’s long-term deferred tax assets and pension assets, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 14. Leases Under the new lease standard, a contract is a lease or contains one when (1) the contract contains an explicitly or implicitly identified asset and (2) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract in exchange for consideration. The company assesses whether an arrangement is a lease, or contains a lease, upon inception of the contract. The company enters into operating leases for buildings, warehouses, office equipment, production equipment, aircraft, land and other types of equipment. When readily determinable, the discount rate used to calculate the lease liability is the rate implicit in the lease. Otherwise, the company uses its incremental borrowing rate based on the information available at lease commencement. The company’s finance and short-term leases are immaterial. Many of the company’s leases include one or more renewal and/or termination options at the company’s discretion, which are included in the determination of the lease term if the company is reasonably certain to exercise the option. The company also enters into lease agreements that have variable payments, such as those related to usage or adjustments to certain indexes. Variable lease payments are recognized in the period in which those payments are incurred. Certain leases also include residual value guarantees; however, these amounts are not probable to be owed and are not included in the calculation of the lease liability. The company subleases all or portions of certain building and warehouse leases to third parties, all of which are classified as operating leases. Some of these arrangements offer the lessee renewal options. The components of lease expense were as follows: Year Ended ($ in millions) December 31, 2019 Operating lease expense $ (67) Variable lease expense (10) Sublease income 3 Net lease expense $ (74) Supplemental cash flow information related to leases was as follows: Year Ended ($ in millions) December 31, 2019 Cash paid for amounts included in the measurements of lease liabilities - Operating cash outflows for operating leases $ (62) ROU assets obtained in exchange for operating lease obligations 35 Supplemental balance sheet information related to operating leases was as follows: ($ in millions) Balance Sheet Location December 31, 2019 Operating lease ROU asset Other assets $ 239 Current operating lease liabilities Other current liabilities 58 Noncurrent operating lease liabilities Other liabilities 181 Weighted average remaining lease term and weighted average discount rate for the company’s operating leases were as follows: December 31, 2019 Weighted average remaining lease term in years 10 Weighted average discount rate (%) 4.3 Maturities of lease liabilities are as follows: ($ in millions) Operating Leases 2020 $ 66 2021 52 2022 43 2023 32 2024 21 Thereafter 88 Future value of lease liabilities 302 Less: Imputed interest (63) Present value of lease liabilities $ 239 As of December 31, 2019, the company has manufacturing equipment leases that have not yet commenced for which the payments are not known at this time. These leases will commence in 2020 and 2021 with lease terms of 10 years. Total noncancellable operating leases in effect at December 31, 2018, as reported under previous lease accounting guidance, required rental payments of the following amounts in each of the following periods: ($ in millions) 2019 $ 66 2020 52 2021 41 2022 34 2023 25 Thereafter 87 Total future lease payments $ 305 |
Debt and Interest Costs
Debt and Interest Costs | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Debt and Interest Costs | 15. Debt and Interest Costs Long-term debt and interest rates in effect consisted of the following: December 31, December 31, ($ in millions) 2019 2018 Senior Notes 5.25% due July 2025 $ 1,000 $ 1,000 4.375% due December 2020 1,000 1,000 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 785 803 5.00% due March 2022 750 750 4.875% due March 2026 750 750 3.50%, euro denominated, due December 2020 449 459 1.50%, euro denominated, due March 2027 617 — 0.875%, euro denominated, due March 2024 841 — Senior Credit Facility (at variable rates) Term A loan, due June 2024 (2019 - 3.94%) 653 — Term A loan, due June 2021 (2018 - 4.02%) — 797 Other (including debt issuance costs) (54) (41) 7,791 6,518 Less: Current portion of long-term debt (1,454) (8) $ 6,337 $ 6,510 In November 2019, Ball issued €750 million of 0.875% senior notes due in March 2024 and €550 million of 1.5% senior notes due in March 2027. On March 25, 2019, the company refinanced its existing credit facilities with a U.S. dollar term loan facility, a U.S. dollar revolving facility and a multicurrency revolving facility that mature in March 2024. The revolving facilities provide the company with up to the U.S. dollar equivalent of $1.75 billion. At December 31, 2019, taking into account outstanding letters of credit, substantially the entire balance was available under these revolving credit facilities. In addition, the company had $1 billion of short-term uncommitted credit facilities available at December 31, 2019, of which $26 million was outstanding and due on demand. At December 31, 2018, the company had $211 million outstanding under short-term uncommitted credit facilities. The weighted average interest rate of the outstanding short-term facilities was 5.99 percent at December 31, 2019, and 3.55 percent at December 31, 2018. In January 2020, Ball redeemed the outstanding euro-denominated 3.50% senior notes due in 2020 in the amount of €400 million and the outstanding 4.375% senior notes due in 2020 in the amount of $1 billion. The fair value of Ball’s long-term debt was estimated to be $8.3 billion at December 31, 2019, compared to its carrying value of $7.8 billion. The fair value was estimated to be $6.6 billion at December 31, 2018, which approximated its carrying value of $6.5 billion. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings and is classified as Level 2 within the fair value hierarchy. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt, based on discounted cash flows. Long-term debt obligations outstanding at December 31, 2019, have maturities (excluding unamortized debt issuance costs of $65 million) of $1.4 billion, $1 million, $751 million, $1.8 billion and $1.4 billion in the years ending 2020 through 2024, respectively, and $2.4 billion thereafter. Letters of credit outstanding at December 31, 2019 and 2018, were $37 million and $28 million, respectively. Interest payments were $331 million, $304 million and $287 million in 2019, 2018 and 2017, respectively. The company’s senior notes and senior credit facilities are guaranteed on a full, unconditional and joint and several basis by certain of its material subsidiaries. Each of the guarantor subsidiaries is 100 percent owned by Ball Corporation. These guarantees are required in support of these notes and credit facilities, are coterminous with the terms of the respective note indentures and would require performance upon certain events of default referenced in the respective guarantees. Notes 24 and 25 provide further details about the company’s debt guarantees, and Note 25 includes the required condensed consolidating financial information for the company, segregating the guarantor and non-guarantor subsidiaries as defined in the debt agreements. The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of the company’s debt covenants requires the company to maintain a leverage ratio (as defined) of no greater than 4.5 times at December 31, 2019. The company was in compliance with all loan agreements and debt covenants at December 31, 2019 and 2018, and has met all debt payment obligations. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2019 | |
Taxes on Income | |
Taxes on Income | 16. Taxes on Income The amount of earnings (loss) before income taxes is: Years Ended December 31, ($ in millions) 2019 2018 2017 U.S. $ 224 $ 193 $ 147 Foreign 384 440 367 $ 608 $ 633 $ 514 The provision (benefit) for income tax expense is: Years Ended December 31, ($ in millions) 2019 2018 2017 Current U.S. $ (1) $ 30 $ 6 State and local 7 5 — Foreign 110 115 77 Total current 116 150 83 Deferred U.S. (26) 21 92 State and local (1) 9 7 Foreign (18) 5 (17) Total deferred (45) 35 82 Tax provision (benefit) $ 71 $ 185 $ 165 The income tax provision recorded within the consolidated statements of earnings differs from the provision determined by applying the U.S. statutory tax rate to pretax earnings as a result of the following: Years Ended December 31, ($ in millions) 2019 2018 2017 Statutory U.S. federal income tax $ 128 $ 133 $ 180 Increase (decrease) due to: Foreign tax rate differences including tax holidays (11) (11) (52) Foreign tax law and rate changes — — (28) U.S. tax reform (a) — (45) 83 Foreign exchange loss on revaluation of Brazilian deferred tax balances 4 26 — Global intangible low-taxed income (GILTI) 12 15 — Permanent differences on business dispositions (3) 56 18 U.S. state and local taxes, net 4 13 3 U.S. taxes on foreign earnings, net of tax deductions and credits (6) (9) (6) U.S. manufacturing deduction — — (8) U.S. research and development tax credits (10) (7) (9) Uncertain tax positions, including interest (19) (1) (3) Change in valuation allowances 24 31 15 Equity compensation related impacts (43) (14) (16) Other, net (9) (2) (12) Provision (benefit) for taxes $ 71 $ 185 $ 165 Effective tax rate expressed as a percentage of pretax earnings 11.7 % 29.2 % 32.1 % (a) Includes 2018 adjustments required to record the final impact of the implications of the U.S. Tax Cuts and Jobs Act signed into law in 2017. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the Act) was signed into law. The Act significantly changed U.S. income tax law by, among other things, reducing the U.S. federal income tax rate from 35 percent to 21 percent, transitioning from a global tax system to a modified territorial tax system, eliminating the domestic manufacturing deduction, providing for immediate expensing of certain qualified capital expenditures and limiting the tax deductions for interest expense and executive compensation. During 2017, tax expense was increased by provisional amounts of $52 million and $31 million related to the revaluing of the net deferred tax asset position in the U.S. and the transition tax, respectively. During 2018, tax expense was decreased by $45 million for the required final adjustments related to the Act. Tax expense for 2019 was increased by $12 million related to the tax on GILTI which was enacted as part of the Act in 2017. Any additional changes as part of the Act had an immaterial impact on tax expense during 2019. The company generally intends to limit distributions from non-U.S. subsidiaries to earnings previously taxed in the U.S., primarily as a result of the transition tax or tax on GILTI incurred pursuant to the Act. As of December 31, 2019, the company has $2.1 billion of retained earnings in non-U.S. subsidiaries. Of these undistributed earnings, $655 million were previously subjected to U.S. federal income tax. The company has accrued approximately $44 million for estimated foreign withholding taxes on portions of the foreign earnings that are not indefinitely reinvested. The company has not provided deferred taxes on any other outside basis differences in our investments in other non-U.S. subsidiaries as these other outside basis differences are indefinitely reinvested. A determination of the unrecognized deferred taxes related to any of these other outside basis differences is not practicable. Ball’s Serbian subsidiary was granted tax relief equal to 80 percent of local investments over a ten-year period that will expire in 2022. The tax relief may be used to offset tax on earnings and has $6 million remaining as of December 31, 2019. Ball’s Polish subsidiary was granted a tax holiday in 2014 based on new capital investment. The holiday provides up to $34 million of tax relief over a ten-year period of which $28 million remained as of December 31, 2019. Several of Ball’s Brazilian subsidiaries benefit from various tax holidays with expiration dates ranging from 2020 to 2030. These tax holidays reduced income tax by $62 million or $0.19 per share, $63 million or $0.18 per share and $47 million or $0.13 per share for 2019, 2018 and 2017, respectively. Net income tax payments were $128 million, $143 million and $107 million in 2019, 2018 and 2017, respectively. The significant components of deferred tax assets and liabilities are as follows: December 31, ($ in millions) 2019 2018 Deferred tax assets: Deferred compensation $ 90 $ 73 Accrued employee benefits 93 100 Accrued pensions 190 179 Inventory and other reserves 42 41 Net operating losses, foreign tax credits and other tax attributes 408 390 Unrealized losses on currency exchange and derivative transactions 6 26 Goodwill and other intangible assets 54 64 Other 168 110 Total deferred tax assets 1,051 983 Valuation allowance (244) (224) Net deferred tax assets 807 759 Deferred tax liabilities: Property, plant and equipment (330) (336) Goodwill and other intangible assets (586) (621) Pension assets (74) (90) Other (137) (120) Total deferred tax liabilities (1,127) (1,167) Net deferred tax asset (liability) $ (320) $ (408) The net deferred tax asset (liability) was included in the consolidated balance sheets as follows: December 31, ($ in millions) 2019 2018 Other assets $ 241 $ 237 Deferred taxes (561) (645) Net deferred tax asset (liability) $ (320) $ (408) At December 31, 2019, Ball has recorded deferred tax assets related to federal and foreign net operating and capital loss carryforwards of $246 million, U.S. foreign tax and research and development tax credit carryforwards of $107 million and state net operating loss carryforwards of $55 million. These attributes are spread across the regions in which the company operates, including Europe, North and Central America, Asia and South America, and generally have expiration periods beginning in 2020 to indefinite, with the largest portion carried forward indefinitely. Each has been assessed for realization as of December 31, 2019. In 2019, the company’s overall valuation allowances increased by a net $20 million. The increase to the valuation allowance was primarily due to nondeductible U.K. interest expense and operating losses incurred primarily in various U.S. state and foreign jurisdictions, none of which are expected to be utilized in future periods. This increase was partially offset by a reduction due to the disposition of certain Asian subsidiaries. Ball’s 2019 effective tax rate was impacted by $24 million of the net change in the valuation allowance. In 2018, the company’s overall valuation allowances increased by a net $59 million. The increase to the valuation allowance was primarily due to nondeductible U.K. interest expense and operating losses incurred primarily in various foreign jurisdictions, neither of which are expected to be utilized in future periods. Ball’s 2018 effective tax rate was impacted by $31 million of the net change in the valuation allowance. In 2017, the company’s overall valuation allowances decreased by a net $18 million. Decreases to the valuation allowance were primarily due to the release of the company’s $46 million valuation allowance on its foreign tax credit carryforwards that will be realized against a portion of the transition tax incurred as a result of the Act and a net decrease of $6 million related to the law change in the U.K., including valuation allowances established against nondeductible interest expense. These items all had an impact on Ball’s effective rate and are included as components of U.S. tax reform, foreign tax law changes and foreign tax rate differences in the rate reconciliation. This net decrease was offset by increases for recording additional valuation allowances of $19 million related to the 2016 acquisition of Rexam and for unusable 2017 losses of $15 million incurred in various jurisdictions. The increase in unusable losses had a tax rate impact which is reflected in the valuation allowance line of the rate reconciliation. A roll forward of the company’s unrecognized tax benefits, as included in other noncurrent liabilities, related to uncertain income tax positions at December 31 follows: ($ in millions) 2019 2018 2017 Balance at January 1 $ 80 $ 84 $ 77 Additions based on tax positions related to the current year — 14 18 Additions for tax positions of prior years — — 1 Reductions for tax positions from prior years — (4) — Reductions for settlements — — (7) Reductions due to lapse of statute of limitations (16) (10) (12) Effect of foreign currency exchange rates (1) (4) 7 Balance at December 31 $ 63 $ 80 $ 84 The annual provisions for income taxes included a tax benefit related to uncertain tax positions, including interest and penalties, of $19 million in 2019, $1 million in 2018 and $3 million in 2017. At December 31, 2019, the amounts of unrecognized tax benefits that, if recognized, would reduce tax expense were $74 million, inclusive of interest, penalties and the federal impact of U.S. state items. The company and its subsidiaries file income tax returns in the U.S. federal, various state, local and foreign jurisdictions. The U.S. federal statute of limitations is closed for years prior to 2014. With a few exceptions, the company is no longer subject to examination by state and local tax authorities for years prior to 2014. The company’s significant non-U.S. filings are in Germany, France, the U.K., Spain, the Netherlands, Poland, Serbia, Switzerland, Sweden, Russia, Turkey, Egypt, Saudi Arabia, Canada, Brazil, the Czech Republic, Mexico, Chile and Argentina. The company’s foreign statutes of limitations are generally open for years after 2013. At December 31, 2019, the company is either under examination or has been notified of a pending examination by tax authorities in the U.S., Germany, the U.K., the Netherlands, France, Ireland, Hong Kong, Saudi Arabia, India, Egypt, Brazil and various U.S. states. Due primarily to potential expiration of certain statutes of limitations, it is reasonably possible that a decrease in the range of $13 million to $19 million in the total amount of unrecognized tax benefits may occur within the coming year, all of which would reduce income tax expense. The company recognizes the accrual of interest and penalties related to unrecognized tax benefits in income tax expense. Ball recognized $3 million of tax benefit, $1 million of tax benefit and $4 million of tax benefit in 2019, 2018 and 2017, respectively, for potential interest on these items. At December 31, 2019, 2018 and 2017, the accrual for uncertain tax positions included potential interest expense of $6 million, $6 million and $7 million, respectively. The company has accrued penalties of $6 million in 2019, $9 million in 2018 and $10 million in 2017. |
Employee Benefit Obligations
Employee Benefit Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Obligations | |
Employee Benefit Obligations | 17. Employee Benefit Obligations December 31, December 31, ($ in millions) 2019 2018 Underfunded defined benefit pension liabilities $ 918 $ 954 Less: Current portion (24) (25) Long-term defined benefit pension liabilities 894 929 Long-term retiree medical liabilities 156 157 Deferred compensation plans 362 291 Other 74 78 $ 1,486 $ 1,455 The company’s defined benefit plans for salaried employees, as well as those for hourly employees in Sweden, Switzerland, the U.K. and Ireland, provide pension benefits based on employee compensation and years of service. Plans for North American hourly employees provide benefits based on fixed rates for each year of service. While the German, Swedish and certain U.S. plans are not funded, the company maintains liabilities, and annual additions to such liabilities are generally tax-deductible. With the exception of the unfunded German, Swedish and certain U.S. plans, the company’s policy is to fund the defined benefit plans in amounts at least sufficient to satisfy statutory funding requirements, taking into consideration deductibility under existing tax laws and regulations. In October 2018, the U.K. High Court passed a judgment that certain pension calculations needed to be adjusted to comply with gender discrimination legislation. The judgment specifically related to the calculation of guaranteed minimum pensions for U.K. defined benefit pension schemes that contracted out of an element of the state pension system between May 1990 and April 1997. The Ball U.K. Pension Plan was affected by this judgment and hence a calculation of the impact of the required equalization was carried out as of the date of the judgment. The effect was an increase in the pension obligation, which reduced the over-funded position by $52 million. This adjustment was accounted for as a prior service cost and initially recorded in accumulated other comprehensive earnings (loss) and it will be amortized to the consolidated statement of earnings over the average life expectancy of plan participants Defined Benefit Pension Plans Amounts recognized in the consolidated balance sheets for the funded status of the company’s defined benefit pension plans consisted of: December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Long-term pension asset $ — $ 437 $ 437 $ — $ 559 $ 559 Defined benefit pension liabilities (a) (647) (271) (918) (678) (276) (954) Funded status $ (647) $ 166 $ (481) $ (678) $ 283 $ (395) (a) Included is an unfunded, non-qualified U.S. plan obligation of $32 million at December 31, 2019, that has been annuitized with a corresponding asset of $27 million ( $3 million in other current assets and $24 million in other assets). At December 31, 2018, the unfunded non-qualified U.S. plan obligation of $30 million was annuitized with a corresponding asset of $30 million ($3 million in other current assets and $27 million in other assets). An analysis of the change in benefit accounts for 2019 and 2018 follows: December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Change in projected benefit obligation: Benefit obligation at prior year end $ 2,579 $ 2,991 $ 5,570 $ 3,061 $ 3,432 $ 6,493 Service cost 50 11 61 51 14 65 Interest cost 101 72 173 99 72 171 Benefits paid (205) (191) (396) (191) (194) (385) Net actuarial (gains) losses 324 391 715 (189) (210) (399) Curtailments and settlements including special termination benefits — (34) (a) (34) (252) (a) — (252) Plan amendments — — — — 52 52 Other — 1 1 — 2 2 Effect of exchange rates — 107 107 — (177) (177) Benefit obligation at year end 2,849 3,348 6,197 2,579 2,991 5,570 Change in plan assets: Fair value of assets at prior year end 1,901 3,274 5,175 2,420 3,632 6,052 Actual return on plan assets 313 311 624 (119) 3 (116) Employer contributions 188 4 192 32 6 38 Contributions to unfunded plans 6 18 24 7 20 27 Benefits paid (205) (191) (396) (191) (194) (385) Curtailments and settlements including special termination benefits — (34) (a) (34) (256) (a) — (256) Other (1) 1 — 8 2 10 Effect of exchange rates — 131 131 — (195) (195) Fair value of assets at end of year 2,202 3,514 5,716 1,901 3,274 5,175 Funded status $ (647) $ 166 $ (481) $ (678) $ 283 $ (395) (a) Includes the purchase of non-participating group annuity contracts discussed below. The company’s German, Swedish and certain U.S. plans are unfunded and the liabilities are included in the company’s consolidated balance sheets. Benefits are paid directly by the company to the participants. Amounts recognized in accumulated other comprehensive (earnings) loss, including other postemployment benefits, consisted of: December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Net actuarial (loss) gain $ (683) $ (31) $ (714) $ (563) $ 140 $ (423) Net prior service (cost) credit 15 (49) (34) 16 (50) (34) Tax effect and currency exchange rates 174 16 190 216 (36) 180 $ (494) $ (64) $ (558) $ (331) $ 54 $ (277) The accumulated benefit obligation for all U.S. defined benefit pension plans was $2,769 million and $2,519 million at December 31, 2019 and 2018, respectively. The accumulated benefit obligation for all foreign defined benefit pension plans was $3,345 million and $2,988 million at December 31, 2019 and 2018, respectively. Following is the information for defined benefit plans with an accumulated benefit obligation in excess of plan assets: December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Projected benefit obligation $ 2,849 $ 328 $ 3,177 $ 2,579 $ 354 $ 2,933 Accumulated benefit obligation 2,769 324 3,093 2,519 351 2,870 Fair value of plan assets (a) 2,202 57 2,259 1,901 79 1,980 (a) The German, Swedish and certain U.S. plans are unfunded and, therefore, there is no fair value of plan assets associated with these plans. Components of net periodic benefit cost were as follows: Years Ended December 31, 2019 2018 2017 ($ in millions) U.S. Foreign Total U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 50 $ 11 $ 61 $ 51 $ 14 $ 65 $ 49 $ 17 $ 66 Interest cost 101 72 173 99 72 171 124 92 216 Expected return on plan assets (116) (109) (225) (108) (108) (216) (126) (110) (236) Amortization of prior service cost 1 3 4 2 — 2 2 — 2 Recognized net actuarial loss 22 4 26 33 5 38 34 5 39 Settlement losses — 8 8 36 — 36 47 (1) 46 Net periodic benefit cost for Ball sponsored plans 58 (11) 47 113 (17) 96 130 3 133 Net periodic benefit cost for multi-employer plans 1 — 1 2 — 2 2 — 2 Total net periodic benefit cost $ 59 $ (11) $ 48 $ 115 $ (17) $ 98 $ 132 $ 3 $ 135 Ball completed the purchase of non-participating group annuity contracts that were transferred to an insurance company for the company’s Canadian pension benefit obligations in 2019 and the company’s U.S. pension benefit obligations in 2018 and 2017, totaling approximately $32 million in 2019, $176 million in 2018 and $224 million in 2017. The 2019 annuity contract purchase settled Ball’s Canadian defined benefit pension obligation in full. The purchase of the annuity contracts triggered settlement accounting in each year. Regular lump sums paid to certain retirees are also included in the total settlement amounts. These transactions resulted in the recognition of settlement losses recorded in business consolidation and other activities of $8 million in 2019, $36 million in 2018 and $44 million in 2017. The company’s pension obligations were remeasured during 2018 and 2017 for the impacted plans. Non-service pension income of $22 million in 2019, income of $5 million in 2018 and expense of $21 million in 2017, respectively, is included in selling, general, and administrative (SG&A) expenses. Due to immateriality, the amount in 2017 was not retrospectively adjusted as required by a newly adopted accounting standard for pension and postretirement benefit costs. The estimated actuarial net loss and net prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during 2020 are a loss of $41 million and a cost of $1 million, respectively. Contributions to the company’s defined benefit pension plans are expected to be approximately $90 million in 2020. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors. Benefit payments related to the plans are expected to be approximately $393 million, $361 million, $366 million, $370 million and $373 million for the years ending December 31, 2020 through 2024, respectively, and approximately $1.9 billion for the years ending December 31, 2025 through 2029. Weighted average assumptions used to determine benefit obligations for the company’s significant U.S. plans at December 31 were: U.S. 2019 2018 2017 Discount rate 3.35 % 4.41 % 3.72 % Rate of compensation increase 4.03 % 4.02 % 4.15 % Weighted average assumptions used to determine benefit obligations for the company’s significant European plans at December 31 were: U.K. Germany 2019 2018 2017 2019 2018 2017 Discount rate 2.07 % 2.90 % 2.55 % 1.11 % 1.74 % 1.68 % Rate of compensation increase 3.50 % 3.50 % 4.41 % 2.50 % 2.50 % 2.50 % Pension increase 3.22 % 3.45 % 3.41 % 1.50 % 1.50 % 1.50 % Weighted average assumptions used to determine net periodic benefit cost for the company’s significant U.S. plans for the years ended December 31 were: U.S. 2019 2018 2017 Discount rate 4.41 % 3.72 % 4.27 % Rate of compensation increase 4.02 % 4.15 % 4.14 % Expected long-term rate of return on assets 5.58 % 5.14 % 5.50 % Weighted average assumptions used to determine net periodic benefit cost for the company’s significant European plans for the years ended December 31 were as follows: U.K. Germany 2019 2018 2017 2019 2018 2017 Discount rate 2.90 % 2.55 % 2.70 % 1.74 % 1.68 % 1.52 % Rate of compensation increase 3.50 % 4.41 % 4.30 % 2.50 % 2.50 % 2.50 % Pension increase 3.45 % 3.41 % 3.41 % 1.50 % 1.50 % 1.50 % Expected long-term rate of return on assets 3.40 % 3.05 % 3.20 % N/A N/A N/A The discount and compensation increase rates used above to determine the December 31, 2019, benefit obligations will be used to determine net periodic benefit cost for 2020. A reduction of the expected return on pension assets assumption by one quarter of a percentage point would result in an approximate $14 million increase in 2020 pension expense, while a quarter of a percentage point reduction in the discount rate applied to the pension liability would result in an estimated increase of pension expense of approximately $1 million in 2020. Accounting for pensions and postretirement benefit plans requires that the benefit obligation be discounted to reflect the time value of money at the measurement date and Other factors used in measuring the obligation include compensation increases, health care cost increases, future rates of inflation, mortality and employee turnover. Actual results may differ from the company’s actuarial assumptions, which may have an impact on the amount of reported expense or liability for pensions or postretirement benefits. In 2019, the company recorded pension expense of $47 million for Ball-sponsored plans, including $8 million of settlement charges and currently expects its 2020 pension expense to be $49 million, using foreign currency exchange rates in effect at December 31, 2019. The expected increase in pension expense, excluding settlement charges, is primarily the result of increased service cost from growth in employee numbers and higher amortization of actuarial losses. For 2017, the company measured service and interest costs utilizing the expected or hypothetical payments for each plan. The expected or hypothetical payments were discounted using the spot rates from the actuarial yield curve for each plan to obtain a single equivalent discount rate that is appropriate for the duration of each plan. For 2018 and 2019, the company measured service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. The company believes this approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. This change in estimate does not affect the measurement of plan obligations nor the funded status of the plans. The assumption related to the expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested to provide for pension benefits over the life of the plans. The assumption was based upon Ball’s pension plan asset allocations, investment strategies and the views of its investment managers, consultants and other large pension plan sponsors. Some reliance was placed on the historical and expected asset returns of the company’s plans. An asset-allocation optimization model was used to project future asset returns using simulation and asset class correlation. The analysis included expected future risk premiums, forward-looking return expectations derived from the yield on long-term bonds and the price earnings ratios of major stock market indexes, expected inflation levels and real risk-free interest rate assumptions and the fund’s expected asset allocation. The expected long-term rates of return on assets were calculated by applying the expected rate of return to a market-related value of plan assets at the beginning of the year, adjusted for the weighted average expected contributions and benefit payments. The market-related value of plan assets used to calculate the expected return was $5,375 million for 2019, $6,052 million for 2018 and $6,121 million for 2017. Defined Benefit Pension Plan Assets Policies and Allocation Information Pension investment committees or scheme trustees of the company and its relevant subsidiaries establish investment policies and strategies for the company’s pension plan assets. The investment policies and strategies include the following common themes to: (1) provide for long-term growth of principal without undue exposure to risk, (2) minimize contributions to the plans, (3) minimize and stabilize pension expense and (4) achieve a rate of return above the market average for each asset class over the long term. The pension investment committees are required to regularly, but no less frequently than annually, review asset mix and asset performance, as well as the performance of the investment managers. Based on their reviews, which are generally conducted quarterly, investment policies and strategies are revised as appropriate. Target asset allocations are set using a minimum and maximum range for each asset category as a percent of the total funds’ market value. Following are the target asset allocations established as of December 31, 2019: U.S. Legacy Ball Legacy Rexam U.K. Cash and cash equivalents 0-10 % 0-10 % 60-100 % (c) Equity securities 10-75 % (a) 10-25 % (d) 0-20 % Fixed income securities 25-70 % (b) 75-90 % 60-100 % (c) Alternative investments 0-35 % — % 0-20 % (a) Equity securities may consist of: (1) up to 25 percent large cap equities, (2) up to 10 percent mid cap equities, (3) up to 10 percent small cap equities, (4) up to 35 percent foreign equities and (5) up to 35 percent special equities. Holdings in Ball Corporation common stock or Ball bonds cannot exceed 5 percent of the trust’s assets. (b) Debt securities may include up to 10 percent non-investment grade bonds, up to 10 percent bank loans and up to 15 percent international bonds. (c) The combined target allocation for fixed income securities and cash and cash equivalents is 60 to 100 percent. (d) Equity securities may consist of: (1) up to 20 percent domestic equities, (2) up to 10 percent international equities, and (3) up to 10 percent private equities. The actual weighted average asset allocations for Ball’s defined benefit pension plans, which individually were within the established targets for each country for that year, were as follows at December 31: 2019 2018 Cash and cash equivalents 2 % 2 % Equity securities 17 % 28 % Fixed income securities 79 % 69 % Alternative investments 2 % 1 % 100 % 100 % Fair Value Measurements of Pension Plan Assets Following is a description of the valuation methodologies used for pension assets measured at fair value: Cash and cash equivalents: Corporate equity securities: U.S. government and agency securities: Corporate bonds and notes: Commingled funds: NAV practical expedient: The preceding methods described may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, although the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of pension assets and liabilities and their placement within the fair value hierarchy levels. The fair value hierarchy levels assigned to the company’s defined benefit plan assets are summarized in the tables below: December 31, 2019 ($ in millions) Level 1 Level 2 Total U.S. pension assets, at fair value: Cash and cash equivalents $ — $ 99 $ 99 Corporate equity securities: Consumer discretionary 83 — 83 Financials 64 — 64 Healthcare 63 — 63 Industrials 76 — 76 Information technology 111 — 111 Utilities 48 — 48 Other 18 — 18 U.S. government, agency and asset-backed securities: FHLMC mortgage backed securities — 42 42 FNMA mortgage backed securities — 73 73 Municipal bonds — 27 27 Treasury bonds 69 — 69 Other — 45 45 Corporate bonds and notes: Communications — 79 79 Consumer discretionary — 99 99 Consumer staples — 100 100 Financials — 261 261 Healthcare — 91 91 Industrials — 101 101 Information technology — 78 78 Oil and gas — 91 91 Private placement — 62 62 Utilities — 101 101 Other — 50 50 Commingled funds 22 81 103 Total level 1 and level 2 $ 554 $ 1,480 2,034 Other investments measured at net asset value (a) 168 Total assets $ 2,202 (a) Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified within the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation. December 31, 2018 ($ in millions) Level 1 Level 2 Total U.S. pension assets, at fair value: Cash and cash equivalents $ 1 $ 97 $ 98 Corporate equity securities: Consumer discretionary 61 — 61 Financials 54 — 54 Healthcare 49 — 49 Industrials 59 — 59 Information technology 73 — 73 Other 50 — 50 U.S. government and agency securities: FHLMC mortgage backed securities — 40 40 FNMA mortgage backed securities — 65 65 Municipal bonds — 52 52 Treasury bonds 45 — 45 Other — 10 10 Corporate bonds and notes: Communications — 67 67 Consumer discretionary — 80 80 Consumer staples — 41 41 Financials — 245 245 Healthcare — 88 88 Industrials — 100 100 Information technology — 54 54 Oil and gas — 103 103 Private placement — 69 69 Utilities — 88 88 Other — 60 60 Commingled funds 18 72 90 Total level 1 and level 2 $ 410 $ 1,331 1,741 Other investments measured at net asset value (a) 160 Total assets $ 1,901 (a) Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented within this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation. December 31, ($ in millions) 2019 2018 U.K. pension assets, at fair value: Cash and cash equivalents $ 40 $ 20 Equity commingled funds 162 — U.K. government bonds 2,576 2,229 Other 28 33 Total level 1 2,806 2,282 Level 2: Investment funds - corporate bonds 478 — Other investments measured at net asset value (a) 173 913 Total assets $ 3,457 $ 3,195 (a) Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified within the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation. Other Postretirement Benefits The company sponsors postretirement health care and life insurance plans for certain U.S. and Canadian employees. Also, postretirement health care and life insurance plans were acquired as part of the Rexam acquisition. Employees may also qualify for long-term disability, medical and life insurance continuation and other postemployment benefits upon termination of active employment prior to retirement. All of the Ball-sponsored postretirement health care and life insurance plans are unfunded and, with the exception of life insurance benefits, are self-insured. The benefit obligation associated with these plans was $171 million and $174 million as of December 31, 2019 and 2018, respectively, including current portions of $15 million and $17 million. Net periodic cost associated with these plans was income of $3 million, income of $2 million and expense of $6 million for the years ended December 31, 2019, 2018 and 2017, respectively. Weighted average assumptions used to determine benefit obligations for the other postretirement benefit plans at December 31 were as follows: U.S. Canada 2019 2018 2017 2019 2018 2017 Discount rate 3.24 % 4.35 % 3.64 % 3.00 % 3.50 % 3.25 % Rate of compensation increase (a) 4.50 % 4.50 % 4.50 % N/A N/A N/A (a) The rate of compensation increase is not applicable for certain U.S. other postretirement benefit plans. Weighted average assumptions used to determine net periodic benefit cost for the other postretirement benefit plans at December 31 were: U.S. Canada 2019 2018 2017 2019 2018 2017 Discount rate 4.35 % 3.64 % 4.16 % 3.50 % 3.25 % 3.50 % Rate of compensation increase (a) 4.50 % 4.50 % 4.50 % N/A N/A N/A (a) The rate of compensation increase is not applicable for certain U.S. other postretirement benefit plans. Deferred Compensation Plans Certain management employees may elect to defer the payment of all or a portion of their annual incentive compensation into the company’s deferred compensation plan and/or the company’s deferred compensation stock plan. The employee becomes a general unsecured creditor of the company with respect to any amounts deferred. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity and Accumulated Other Comprehensive Earnings | |
Shareholders' Equity | 18. Shareholders’ Equity At December 31, 2019, the company had 1.1 billion shares of common stock and 15 million shares of preferred stock authorized, both without par value. Preferred stock includes 550,000 authorized but unissued shares designated as Series A Junior Participating Preferred Stock. Under its ongoing share repurchase program, the company repurchased $945 million, $711 million and $76 million of its shares, net of issuances, during the years ended December 31, 2019, 2018, and 2017, respectively. The 2019 amount included shares repurchased under accelerated share repurchase agreements with third-party financial institutions. On January 23, 2019, the Board authorized the repurchase by the company of up to a total of 50 million shares. This repurchase authorization replaced all previous authorizations. In April 2019, the company’s Board of Directors increased the quarterly cash dividend by 50 percent to 15 cents per share. In April 2017, the company’s Board of Directors declared a two-for-one split of Ball Corporation’s common stock and increased the quarterly cash dividend by 54 percent to 10 cents on a post-split basis. The stock split was effective as of May 16, 2017. Accumulated Other Comprehensive Earnings (Loss) The activity related to accumulated other comprehensive earnings (loss) was as follows: ($ 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, 2017 $ (307) $ (362) $ 13 $ (656) Other comprehensive earnings (loss) before reclassifications (197) 33 25 (139) Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 52 (92) (40) Balance at December 31, 2018 $ (504) $ (277) $ (54) $ (835) Other comprehensive earnings (loss) before reclassifications 119 (223) 67 (37) Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 18 (22) (4) Currency translation recognized in earnings from the sale of the Argentina steel aerosol business 45 — — 45 Stranded tax effects reclassified into retained earnings — (76) (3) (79) Balance at December 31, 2019 $ (340) $ (558) $ (12) $ (910) The following table provides additional details of the amounts reclassified into net earnings from accumulated other comprehensive earnings (loss): Years Ended December 31, ($ in millions) 2019 2018 2017 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ 18 $ 1 $ (7) Commodity contracts recorded in cost of sales (45) 54 50 Currency exchange contracts recorded in selling, general and administrative 7 1 (1) Cross-currency swaps recorded in selling, general and administrative 35 49 (136) Cross-currency swaps recorded in interest expense 12 14 16 Interest rate contracts recorded in interest expense 1 — — Total before tax effect 28 119 (78) Tax benefit (expense) on amounts reclassified into earnings (6) (27) 13 Recognized gain (loss), net of tax $ 22 $ 92 $ (65) Amortization of pension and other postretirement benefits: (a) Prior service income (expense) $ (2) $ (1) $ (1) Actuarial gains (losses) (14) (32) (34) Effect of pension settlements (8) (36) (44) Total before tax effect (24) (69) (79) Tax benefit (expense) on amounts reclassified into earnings 6 17 30 Recognized gain (loss), net of tax $ (18) $ (52) $ (49) (a) These components include the computation of net periodic benefit cost detailed in Note 17. |
Stock-Based Compensation Progra
Stock-Based Compensation Programs | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation Programs | |
Stock-Based Compensation Programs | 19. Stock-Based Compensation Programs The company has shareholder-approved stock plans under which options and stock-settled appreciation rights (SSARs) have been granted to employees at the market value of the company’s stock on the date of grant. In the case of stock options, payment must be made by the employee at the time of exercise in cash or with shares of stock owned by the employee, which are valued at fair market value on the date exercised. For SSARs, the employee receives the share equivalent of the difference between the fair market value on the date exercised and the exercise price of the SSARs exercised. In general, options and SSARs are exercisable in four equal installments commencing one year from the date of grant and terminating 10 years from the date of grant. A summary of outstanding stock option and SSAR activity for the year ended December 31, 2019, follows: Number of Weighted Average Shares Exercise Price Beginning of year 15,175,811 $ 27.45 Granted 1,624,395 51.42 Exercised (4,173,273) 21.19 Canceled/forfeited (241,473) 42.13 End of period 12,385,460 32.41 Vested and exercisable, end of year 7,957,900 $ 26.82 Reserved for future grants 19,641,712 The weighted average remaining contractual term for all options and SSARs outstanding at December 31, 2019, was 5.5 years and the aggregate intrinsic value (difference in exercise price and closing price at that date) was $400 million. The weighted average remaining contractual term for options and SSARs vested and exercisable at December 31, 2019, was 4.1 years and the aggregate intrinsic value was $301 million. The company received $41 million, $29 million and $21 million from options exercised during 2019, 2018 and 2017, respectively, and the intrinsic value associated with these exercises was $61 million, $30 million and $26 million for the same periods, respectively. The excess tax benefit associated with the company’s stock compensation programs was $35 million for 2019, and was reported as a discrete item in the consolidated tax provision. The total fair value of options and SSARs vested during 2019, 2018 and 2017 was $16 million, $16 million and $14 million, respectively. These options and SSARs cannot be traded in any equity market. However, based on the Black-Scholes option pricing model, options and SSARs granted in 2019, 2018 and 2017 have estimated weighted average fair values at the date of grant of $12.26 per share, $9.07 per share and $7.82 per share, respectively. The actual value an employee may realize will depend on the excess of the stock price over the exercise price on the date the option or SSAR is exercised. Consequently, there is no assurance that the value realized by an employee will equal the fair value estimated at the grant date. The fair values were estimated using the following weighted average assumptions: 2019 Grants 2018 Grants 2017 Grants Expected dividend yield 0.79 % 1.03 % 0.89 % Expected stock price volatility 20.36 % 21.98 % 19.62 % Risk-free interest rate 2.59 % 2.47 % 2.00 % Expected life of options (in years) 6.40 years 6.10 years 5.94 years In addition to stock options and SSARs, the company issues to certain employees restricted shares and restricted stock units, which vest over various periods. Other than the performance-contingent grants discussed below, such restricted shares and restricted stock units generally vest in equal installments over five years. Compensation cost is recorded based upon the fair value of the shares at the grant date. Following is a summary of restricted stock activity for the year ended December 31, 2019: Weighted Number of Average Shares/Units Grant Price Beginning of year 2,875,294 $ 34.17 Granted 543,384 45.88 Vested (871,225) 30.83 Canceled/forfeited (108,717) 39.68 End of year 2,438,736 $ 37.73 The company’s Board of Directors has granted performance contingent restricted stock units (PC-RSUs) to key employees. These PC-RSUs vest three years from the date of grant, and the number of shares available at the vesting date is based on the company’s increase in economic valued added (EVA®) dollars compared to the EVA® dollars generated in the calendar year prior to the grant, ranging from zero to 200 percent of each participant’s assigned award opportunity. If the minimum performance goals are not met, the shares will be forfeited. Grants under the plan are being accounted for as equity awards and compensation expense is recorded based upon the most probable outcome using the closing market price of the shares at the grant date. On a quarterly basis, the company reassesses the probability of the goals being met and adjusts compensation expense as appropriate. The expense associated with these performance-contingent grants recognized in selling, general and administrative expenses totaled $5 million in 2019 $21 million in 2018, and $9 million in 2017. During 2017, the company’s Board of Directors granted 1.1 million PC-RSUs (on a post-stock split basis) to employees related to the Special Acquisition-Related Incentive Plan (SAIP). These awards vested in January 2020 based on the company’s achievement of cumulative EVA® and cash flow performance goals. The expense associated with these performance-contingent grants, as recognized in business consolidation and other activities, totaled $6 million in 2019, $23 million in 2018 and $11 million in 2017. For the years ended December 31, 2019, 2018 and 2017, the company recognized pretax expense of $37 million ($33 million after tax), $75 million ($61 million after tax) and $46 million ($35 million after tax), respectively, for share-based compensation arrangements. At December 31, 2019, there was $50 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. This cost is expected to be recognized in earnings over a weighted average period of 2.2 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings and Dividends Per Share | |
Earnings Per Share | 20. Earnings Per Share Years Ended December 31, ($ in millions, except per share amounts; shares in thousands) 2019 2018 2017 Net earnings attributable to Ball Corporation $ 566 $ 454 $ 374 Basic weighted average common shares 331,102 344,796 350,269 Effect of dilutive securities 9,019 7,525 6,716 Weighted average shares applicable to diluted earnings per share 340,121 352,321 356,985 Per basic share $ 1.71 $ 1.32 $ 1.07 Per diluted share $ 1.66 $ 1.29 $ 1.05 Certain outstanding options and SSARs were excluded from the diluted earnings per share calculation because they were anti-dilutive (i.e., the sum of the proceeds, including the unrecognized compensation, exceeded the average closing stock price for the period). The excluded options and SSARs totaled approximately 4 million in 2018 and 2 million in 2017. The company declared and paid dividends of $0.55 per share in 2019, $0.40 per share in 2018 and $0.365 in 2017. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Risk Management | |
Financial Instruments and Risk Management | 21. Financial Instruments and Risk Management Policies and Procedures The company employs established risk management policies and procedures, which seek to reduce its commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to set-off any amounts owed with regard to open derivative positions. Commodity Price Risk Aluminum The company manages commodity price risk in connection with market price fluctuations of aluminum ingot through two different methods. First, the company enters into container sales contracts that include aluminum ingot-based pricing terms that generally reflect the same price fluctuations under commercial purchase contracts for aluminum sheet. The terms include fixed, floating or pass-through aluminum ingot component pricing. Second, the company uses certain derivative instruments such as option and forward contracts as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. At December 31, 2019, the company had aluminum contracts limiting its aluminum exposure with notional amounts of approximately $1.7 billion, of which approximately $1.6 billion received hedge accounting treatment. Cash flow hedges relate to forecasted sales and purchase transactions and expire within the next two years . Included in shareholders’ equity at December 31, 2019, within accumulated other comprehensive earnings (loss), is a net after-tax loss of $15 million associated with these contracts. A net loss of $13 million is expected to be recognized in the consolidated statement of earnings during the next 12 months, the majority of which will be offset by pricing changes in sales and purchase contracts, thus resulting in little or no earnings impact to Ball. Interest Rate Risk The company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower the company’s overall borrowing costs. To achieve these objectives, the company may use a variety of interest rate swaps, collars and options to manage the company’s mix of floating and fixed-rate debt. At December 31, 2019, the company had outstanding interest rate swap and option contracts with notional amounts of approximately $827 million paying fixed rates expiring within the next two years . The amount recorded in accumulated other comprehensive earnings (loss) at December 31, 2019, is insignificant. Currency Exchange Rate Risk The company’s objective in managing exposure to currency fluctuations is to limit the exposure of cash flows and earnings from changes associated with currency exchange rate changes through the use of various derivative contracts. In addition, at times the company manages earnings translation volatility through the use of currency option strategies, and the change in the fair value of those options is recorded in the company’s net earnings. At December 31, 2019, the company had outstanding exchange forward contracts and option contracts with notional amounts totaling approximately $4.3 billion. Approximately $7 million of net after-tax gain related to these contracts is included in accumulated other comprehensive earnings at December 31, 2019, of which a $1 million net loss is expected to be recognized in the consolidated statement of earnings during the next 12 months. The contracts outstanding at December 31, 2019, expire within five years . Additionally, the company entered into a $1 billion cross-currency swap contract to partially mitigate the risk on foreign currency denominated intercompany debt in 2016. The company fully settled this contract during 2019. Approximately $4 million of net after-tax loss related to these contracts is included in accumulated other comprehensive earnings at December 31, 2019, and is expected to be recognized in the consolidated statement of earnings during the next 12 months. Common Stock Price Risk The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. The company entered into total return swaps to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding through May 2020 and have a combined notional value of 2.9 million shares. Based on the current number of shares in the program, each $1 change in the company’s stock price has an insignificant impact on pretax earnings, net of the impact of related derivatives. Collateral Calls The company’s agreements with its financial counterparties require the company to post collateral in certain circumstances when the negative mark to fair value of the contracts exceeds specified levels. Additionally, the company has collateral posting arrangements with certain customers on these derivative contracts. The cash flows of the margin calls are shown within the investing section of the company’s consolidated statements of cash flows. As of December 31, 2019 and 2018, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $35 million and $46 million, respectively, and no collateral was required to be posted. Fair Value Measurements Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of December 31, 2019 and 2018, and presented those values in the table below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. December 31, 2019 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 7 $ 1 $ 8 Foreign currency contracts 4 43 47 Other contracts 2 — 2 Total current derivative contracts Other current assets $ 13 $ 44 $ 57 Foreign currency contracts $ 15 $ — $ 15 Other contracts 1 — 1 Total noncurrent derivative contracts Other noncurrent assets $ 16 $ — $ 16 Liabilities: Commodity contracts $ 26 $ 1 $ 27 Foreign currency contracts — 18 18 Other contracts — 19 19 Total current derivative contracts Other current liabilities $ 26 $ 38 $ 64 Commodity contracts $ 1 $ — $ 1 Total noncurrent derivative contracts Other noncurrent liabilities $ 1 $ — $ 1 December 31, 2018 Derivatives Derivatives not Total Assets: Commodity contracts $ 9 $ 1 $ 10 Foreign currency contracts — 21 21 Cross-currency and other contracts — 5 5 Total current derivative contracts Other current assets $ 9 $ 27 $ 36 Liabilities: Commodity contracts $ 42 $ 11 $ 53 Foreign currency contracts 2 4 6 Cross-currency and other contracts 1 2 3 Total current derivative contracts Other current liabilities $ 45 $ 17 $ 62 Commodity contracts $ 2 $ — $ 2 Cross-currency and other contracts 62 — 62 Total noncurrent derivative contracts Other noncurrent liabilities $ 64 $ — $ 64 The company uses closing spot and forward market prices as published by the London Metal Exchange, the Chicago Mercantile Exchange, Reuters and Bloomberg to determine the fair value of any outstanding aluminum, currency, energy, inflation and interest rate spot and forward contracts. Option contracts are valued using a Black-Scholes model with observable market inputs for aluminum, currency and interest rates. The company values each of its financial instruments either internally using a single valuation technique, from a reliable observable market source or from third-party software. The company does not adjust the value of its financial instruments except in determining the fair value of a trade that settles in the future. The present value discounting factor is based on the comparable time period LIBOR rate or 12-month LIBOR. Ball performs validations of the company’s internally derived fair values reported for the company’s financial instruments on a quarterly basis utilizing counterparty valuation statements. The company additionally evaluates counterparty creditworthiness and, as of December 31, 2019, has not identified any circumstances requiring the reported values of the company’s financial instruments be adjusted. The following tables provide the effects of derivative instruments in the consolidated statement of earnings and on accumulated other comprehensive earnings (loss): Year Ended December 31, 2019 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 18 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales (45) 2 Interest rate contracts - manage exposure for outstanding debt Interest expense 1 — Foreign currency contracts - manage currency exposure Selling, general and administrative 7 111 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 35 — Cross-currency swaps - manage intercompany currency exposure Interest expense 12 — Equity contracts Selling, general and administrative — 46 Total $ 28 $ 159 Year Ended December 31, 2018 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 1 $ 1 Commodity contracts - manage exposure to supplier pricing Cost of sales 54 8 Foreign currency contracts - manage currency exposure Selling, general and administrative 1 70 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 49 — Cross-currency swaps - manage intercompany currency exposure Interest expense 14 — Equity contracts Selling, general and administrative — 19 Total $ 119 $ 98 Year Ended December 31, 2017 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ (7) $ (4) Commodity contracts - manage exposure to supplier pricing Cost of sales 50 (5) Foreign currency contracts - manage general exposure with the business Selling, general and administrative (1) (57) Cross-currency swaps - manage intercompany currency exposure within the business Selling, general and administrative (136) — Cross-currency swaps - manage intercompany currency exposure within the business Interest expense 16 — Equity contracts Selling, general and administrative — (1) Total $ (78) $ (67) The changes in accumulated other comprehensive earnings (loss) for effective derivatives were as follows: Years Ended December 31, ($ in millions) 2019 2018 2017 Amounts reclassified into earnings: Commodity contracts $ 27 $ (55) $ (43) Cross-currency swap contracts (47) (63) 120 Interest rate contracts (1) — — Currency exchange contracts (7) (1) 1 Change in fair value of cash flow hedges: Commodity contracts (10) (31) 67 Interest rate contracts 1 — — Cross-currency swap contracts 78 69 (137) Currency exchange contracts 17 (5) 7 Foreign currency and tax impacts (13) 19 20 Stranded tax effects reclassified into retained earnings: Commodity contracts 2 — — Cross-currency swap contracts (5) — — $ 42 $ (67) $ 35 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results of Operations (Unaudited) | |
Quarterly Results of Operations (Unaudited) | 22. Quarterly Results of Operations (Unaudited) Set forth below are the company’s 2019 and 2018 results for the quarters ended March 31, June 30, September 30 and December 31. ($ in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total 2019 Net sales $ 2,785 $ 3,017 $ 2,953 $ 2,719 $ 11,474 Gross profit (a) 407 463 468 437 1,775 Earnings before taxes $ 140 $ 226 $ 119 $ 123 $ 608 Net earnings (loss) attributable to Ball Corporation $ 117 $ 197 $ 92 $ 160 $ 566 Basic earnings (loss) per share (b) $ 0.35 $ 0.59 $ 0.28 $ 0.49 $ 1.71 Diluted earnings (loss) per share (b) $ 0.34 $ 0.58 $ 0.27 $ 0.48 $ 1.66 First Quarter Second Quarter Third Quarter Fourth Quarter Total 2018 Net sales $ 2,785 $ 3,101 $ 2,946 $ 2,803 $ 11,635 Gross profit (a) 418 483 466 431 1,798 Earnings before taxes $ 152 $ 166 $ 192 $ 123 $ 633 Net earnings attributable to Ball Corporation $ 125 $ 119 $ 59 $ 151 $ 454 Basic earnings per share (b) $ 0.36 $ 0.34 $ 0.17 $ 0.45 $ 1.32 Diluted earnings per share (b) $ 0.35 $ 0.34 $ 0.17 $ 0.44 $ 1.29 (a) Gross profit is shown after depreciation and amortization related to cost of sales of $488 million and $509 million for the years ended December 31, 2019 and 2018, respectively. (b) Earnings per share calculations for each quarter are based on the weighted average shares outstanding for that period. As a result, the sum of the quarterly amounts may not equal the annual earnings per share amount. The unaudited quarterly results of operations included business consolidation and other activities that affected the company’s operating performance. Further details are included in Note 6. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Contingencies | |
Contingencies | 23. 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 $29 million in the aggregate, and such amounts have been included in other current liabilities and other noncurrent liabilities at December 31, 2019. In November 2012, the USEPA wrote to the company asserting that it is one of at least 50 PRPs with respect to the Lower Duwamish site located in Seattle, Washington, based on the company’s ownership of a glass container plant prior to 1995, and notifying the company of a proposed remediation action plan. A site was selected to begin data review on over 30 industrial companies and government entities and at least two PRP groups have been discussing various allocation proposals. The USEPA issued the site Record of Decision (ROD) in December 2014. Ball submitted its initial responses to the allocator’s questionnaire in March 2015, and after reviewing submissions from the PRPs alleging deficiencies in certain of Ball’s responses, the allocator denied certain of the allegations and directed the company to answer others, to which Ball responded during the fourth quarter of 2016. A group of de minimis PRPs, including Ball, retained a technical consultant to assist with their positions vis-à-vis larger PRPs, and further presentations were made to the site allocator during the fourth quarter of 2017 and the first quarter of 2018. Total site remediation costs of $342 million, to cover remediation of approximately 200 acres of river bottom, are expected according to the proposed remediation action plan, which does not include $100 million that has already been spent, and which will be allocated among the numerous PRPs in due course. Based on the information available at this time, the company does not believe that this matter will have a material adverse effect upon its liquidity, results of operations or financial condition. In February 2012, Ball Metal Beverage Container Corp. (BMBCC) filed an action against Crown Packaging Technology, Inc. (Crown) in the U.S. District Court for the Southern District of Ohio (the Court) seeking a declaratory judgment that the manufacture, sale and use of certain ends by BMBCC and its customers do not infringe certain claims of Crown’s U.S. patents. Crown subsequently filed a counterclaim alleging infringement of certain claims in these patents seeking unspecified monetary damages, fees and declaratory and injunctive relief. The District Court issued a claim construction order at the end of December 2015 and held a scheduling conference on February 10, 2016, to determine the timeline for future steps in the litigation. The case was stayed by mutual agreement of the parties into the third quarter of 2016, during which Crown made preparations for its discovery with respect to certain ends previously produced by Rexam’s U.S. subsidiary, Rexam Beverage Can Company (RBCC). Such discovery began during the first half of 2017 and concluded in the fourth quarter of 2018. The parties attempted to mediate the case on August 1, 2017, but no progress was made, and the case continued as scheduled. In December, 2018, BMBCC and RBCC filed a motion for summary judgment that the Crown patents at issue are invalid and that the applicable ends supplied by BMBCC and RBCC did not infringe the patents. Crown did not file a motion for summary judgment. Oral argument on the motion filed by BMBCC and RBCC was completed in January 2019. On June 21, 2019, the District Court issued an order sustaining the BMBCC/RBCC motion as to invalidity, declining to rule on the other grounds as moot, and indicating that an expanded opinion and an appealable order would be forthcoming. The expanded opinion was docketed on July 22, 2019. The final, appealable order was issued by the Court on September 25, 2019, and the expanded opinion was unsealed. On October 22, 2019, Crown filed a Notice of Appeal of the decision of the Court to the Court of Appeals for the Federal Circuit. Based on the information available at the present time, the company does not believe that this matter will have a material adverse effect upon its liquidity, results of operations or financial condition. A former Rexam Personal Care site in Annecy, France, was found in 2003 to be contaminated following a leak of chlorinated solvents (TCE) from an underground feedline. The site underwent extensive investigation and an active remediation treatment system was put in place in 2006. The business operating from the site was sold to Albea in 2013 and in turn to a French company CATIDOM (operating as Reboul). Reboul vacated the site in September 2014, and the site reverted back to Rexam during the first quarter of 2015. As part of the site closure regulatory requirements, a new regulatory permit (Prefectoral Order) was issued in June 2016, which includes requirements to undertake a cost-benefit analysis and pilot studies of further treatment for the known residual solvent contamination following the shutdown of the current on-site treatment system. A new management plan was proposed to the French Environmental Authorities (DREAL) during 2018 and is the subject of ongoing discussions ahead of a final plan for the site being addressed. Based on the information available at this time, the company does not believe that this matter will have a material adverse effect upon its liquidity, results of operations or financial condition. The company’s operations in Brazil are involved in various governmental assessments, principally related to claims for taxes on the internal transfer of inventory, gross revenue taxes and indirect tax incentives. 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 appeal also requested a modulation of the decision’s effects, which may limit its impact on taxpayers. The company’s Brazilian subsidiaries paid to the Brazilian tax authorities the gross amounts of certain indirect taxes (which included ICMS in their tax base) and filed lawsuits in 2014 and 2015 to challenge the legality of these tax on tax amounts. Pursuant to these lawsuits, the company requested reimbursement of prior excess tax payments and entitlement to retain amounts not remitted. During the third quarter of 2018, the company learned of a further decision of the Court indicating that lawsuits filed prior to the trial resulting in its 2017 decision, such as those filed by the company, would likely be upheld. The company also noted that other Brazilian companies, including customers of its Brazilian subsidiaries, which had timely filed equivalent lawsuits, were recording income based on the applicable ICMS amounts retained. During the second quarter of 2019, the company received additional favorable court rulings and completed its analysis of certain prior year overpayments related to ICMS. As these gain contingency amounts are now estimable and realizable, the company recorded $57 million of prior year collections in business consolidation and other activities within the company’s condensed consolidated statement of earnings. The company is currently seeking reimbursement for additional ICMS-related amounts previously paid to the Brazilian government; however, such amounts cannot be estimated at this time. In the event other comparable cases are resolved and the amounts claimed become estimable and realizable, the company will record gains, which may result in material reimbursements to the company in future periods. |
Indemnifications and Guarantees
Indemnifications and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Indemnifications and Guarantees | |
Indemnifications and Guarantees | 24. Indemnifications and Guarantees General Guarantees The company or its appropriate consolidated direct or indirect subsidiaries, including Rexam and its subsidiaries, have made certain indemnities, commitments and guarantees under which the specified entity may be required to make payments in relation to certain transactions. These indemnities, commitments and guarantees include indemnities to the customers of the subsidiaries in connection with the sales of their packaging and aerospace products and services; guarantees to suppliers of subsidiaries of the company guaranteeing the performance of the respective entity under a purchase agreement, construction contract, renewable energy purchase contract or other commitment; guarantees in respect of certain foreign subsidiaries’ pension plans; indemnities for liabilities associated with the infringement of third-party patents, trademarks or copyrights under various types of agreements; indemnities to various lessors in connection with facility, equipment, furniture and other personal property leases for certain claims arising from such leases; indemnities to governmental agencies in connection with the issuance of a permit or license to the company or a subsidiary; indemnities pursuant to agreements relating to certain joint ventures; indemnities in connection with the sale of businesses or substantially all of the assets and specified liabilities of businesses; and indemnities to directors, officers and employees of the company to the extent permitted under the laws of the State of Indiana and the United States of America. The duration of these indemnities, commitments and guarantees varies and, in certain cases, is indefinite. In addition, many of these indemnities, commitments and guarantees do not provide for any limitation on the maximum potential future payments the company could be obligated to make. As such, the company is unable to reasonably estimate its potential exposure under these items. Other than the indemnifications provided in connection with the Rexam acquisition, the company has not recorded any material liabilities for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets. The company does, however, accrue for payments under promissory notes and other evidences of incurred indebtedness and for losses for any known contingent liability, including those that may arise from indemnifications, commitments and guarantees, when future payment is both reasonably estimable and probable. Finally, the company carries specific and general liability insurance policies and has obtained indemnities, commitments and guarantees from third-party purchasers, sellers and other contracting parties, which the company believes would, in certain circumstances, provide recourse to certain claims arising from these indemnifications, commitments and guarantees. Debt Guarantees The company’s and its subsidiaries’ obligations under the senior notes and senior credit facilities (or, in the case of U.S. domiciled foreign subsidiaries under the senior credit facilities, the obligations of foreign credit parties only) are guaranteed on a full, unconditional and joint and several basis by certain of the company’s domestic subsidiaries and the domestic subsidiary borrowers, and obligations of other guarantors and the subsidiary borrowers under the senior credit facilities are guaranteed by the company, in each case with certain exceptions. These guarantees are required in support of the senior notes and senior credit facilities referred to above, are coterminous with the terms of the respective note indentures, senior notes and credit agreement and could be enforced by the holders of the obligations thereunder during the continuation of an event of default under the note indentures, the senior notes and/or the credit agreement. The maximum potential amounts which could be required to be paid under such guarantees are essentially equal to the then outstanding obligations under the respective senior notes or the credit agreement (or, in the case of U.S. domiciled foreign subsidiaries under the senior credit facilities, the obligations of foreign credit parties only), with certain exceptions. All obligations under the guarantees of the senior credit facilities are secured, with certain exceptions, by a valid first priority perfected lien or pledge on (i) 100 percent of the capital stock of each of the company's material wholly owned domestic subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries and (ii) 65 percent of the capital stock of each of the company's material wholly owned first-tier foreign subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries. In addition, the obligations of certain foreign borrowers and foreign pledgors under the loan documents will be secured, with certain exceptions, by a valid first priority perfected lien or pledge on 100 percent of the capital stock of certain of the company's material wholly owned foreign subsidiaries and material wholly owned U.S. domiciled foreign subsidiaries directly owned by the company or any of its wholly owned material subsidiaries. The company is not in default under the above senior notes or senior credit facilities. The required condensed consolidating financial information for the guarantor and non-guarantor subsidiaries is presented in Note 25. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required under the Securities and Exchange Commission (SEC) regulations. |
Subsidiary Guarantees of Debt
Subsidiary Guarantees of Debt | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiary Guarantees of Debt | |
Subsidiary Guarantee of Debt | 25. Subsidiary Guarantees of Debt The following condensed consolidating financial information is presented in accordance with SEC Regulations S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. For presentation purposes, the subsidiaries of the company providing the guarantees are referred to as the guarantor subsidiaries, and subsidiaries of the company other than the guarantor subsidiaries are referred to as the non-guarantor subsidiaries. The eliminating adjustments substantively consist of intercompany transactions and the elimination of equity investments and earnings of subsidiaries. Separate financial statements for the guarantor subsidiaries and the non-guarantor subsidiaries are not presented because management has determined that such financial statements are not required under SEC regulations. The company’s senior notes are guaranteed on a full and unconditional guarantee on a joint and several basis by certain domestic subsidiaries of the company. Each of the guarantor subsidiaries is 100 percent owned by the company. As described in the supplemental indentures governing the company’s existing senior notes, the senior notes are to be guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company. The following is condensed consolidating financial information for the company, segregating the guarantor and non-guarantor subsidiaries, as of December 31, 2019 and 2018, and for the three years ended December 31, 2019, 2018 and 2017. As a result of the July 31, 2018, sale of the U.S. steel food and steel aerosol business, certain guarantor subsidiaries ceased to be guarantors of Ball’s debt obligations and are reflected in the following tables on a prospective basis. The condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, earnings or cash flows of the company or any of the company’s subsidiaries on a stand-alone basis. Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 6,540 $ 5,733 $ (799) $ 11,474 Cost and expenses Cost of sales (excluding depreciation and amortization) — (5,591) (4,411) 799 (9,203) Depreciation and amortization (5) (199) (474) — (678) Selling, general and administrative (74) (179) (164) — (417) Business consolidation and other activities (26) (40) (178) — (244) Equity in results of subsidiaries 711 141 — (852) — Intercompany 221 (121) (100) — — 827 (5,989) (5,327) (53) (10,542) Earnings (loss) before interest and taxes 827 551 406 (852) 932 Interest expense (318) 5 (4) — (317) Debt refinancing and other costs (7) — — — (7) Total interest expense (325) 5 (4) — (324) Earnings (loss) before taxes 502 556 402 (852) 608 Tax (provision) benefit 64 (49) (86) — (71) Equity in results of affiliates, net of tax — (10) 9 — (1) Net earnings 566 497 325 (852) 536 Less net earnings attributable to noncontrolling interests — — 30 — 30 Net earnings attributable to Ball Corporation $ 566 $ 497 $ 355 $ (852) $ 566 Comprehensive earnings (loss) attributable to Ball Corporation $ 570 $ 551 $ 402 $ (953) $ 570 Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 6,558 $ 5,874 $ (797) $ 11,635 Cost and expenses Cost of sales (excluding depreciation and amortization) — (5,551) (4,575) 797 (9,329) Depreciation and amortization (6) (202) (494) — (702) Selling, general and administrative (303) 15 (190) — (478) Business consolidation and other activities (108) (29) (54) — (191) Equity in results of subsidiaries 758 82 — (840) — Intercompany 287 (194) (93) — — 628 (5,879) (5,406) (43) (10,700) Earnings (loss) before interest and taxes 628 679 468 (840) 935 Interest expense (311) 12 (2) — (301) Debt refinancing and other costs (1) — — — (1) Total interest expense (312) 12 (2) — (302) Earnings (loss) before taxes 316 691 466 (840) 633 Tax (provision) benefit 138 (203) (120) — (185) Equity in results of affiliates, net of tax — (10) 15 — 5 Net earnings 454 478 361 (840) 453 Less net earnings attributable to noncontrolling interests — — 1 — 1 Net earnings attributable to Ball Corporation $ 454 $ 478 $ 362 $ (840) $ 454 Comprehensive earnings (loss) attributable to Ball Corporation $ 275 $ 467 $ 182 $ (649) $ 275 Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2017 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 5,674 $ 5,532 $ (223) $ 10,983 Cost and expenses Cost of sales (excluding depreciation and amortization) — (4,722) (4,218) 223 (8,717) Depreciation and amortization (8) (209) (512) — (729) Selling, general and administrative (168) (151) (195) — (514) Business consolidation and other activities (120) (56) (45) — (221) Equity in results of subsidiaries 673 141 (40) (774) — Intercompany 301 (150) (151) — — 678 (5,147) (5,161) (551) (10,181) Earnings (loss) before interest and taxes 678 527 371 (774) 802 Interest expense (275) 6 (16) — (285) Debt refinancing and other costs — — (3) — (3) Total interest expense (275) 6 (19) — (288) Earnings (loss) before taxes 403 533 352 (774) 514 Tax (provision) benefit (29) (79) (57) — (165) Equity in results of affiliates, net of tax — 14 17 — 31 Net earnings 374 468 312 (774) 380 Less net earnings attributable to noncontrolling interests — — (6) — (6) Net earnings attributable to Ball Corporation $ 374 $ 468 $ 306 $ (774) $ 374 Comprehensive earnings (loss) attributable to Ball Corporation $ 659 $ 731 $ 578 $ (1,309) $ 659 Condensed Consolidating Balance Sheet December 31, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 877 $ — $ 921 $ — $ 1,798 Receivables, net 31 494 1,106 — 1,631 Intercompany receivables 121 360 1,546 (2,027) — Inventories, net — 550 724 — 1,274 Other current assets 24 35 122 — 181 Total current assets 1,053 1,439 4,419 (2,027) 4,884 Noncurrent assets Property, plant and equipment, net 37 1,474 2,959 — 4,470 Investment in subsidiaries 7,289 2,489 (99) (9,679) — Goodwill — 1,190 3,229 — 4,419 Intangible assets, net 18 376 1,608 — 2,002 Other assets 331 304 950 — 1,585 Total assets $ 8,728 $ 7,272 $ 13,066 $ (11,706) $ 17,360 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 1,449 $ — $ 31 $ — $ 1,480 Accounts payable 16 1,111 2,009 — 3,136 Intercompany payables 2,473 94 338 (2,905) — Accrued employee costs 46 149 90 — 285 Other current liabilities 177 184 315 — 676 Total current liabilities 4,161 1,538 2,783 (2,905) 5,577 Noncurrent liabilities Long-term debt 6,330 — 7 — 6,337 Employee benefit obligations 824 368 294 — 1,486 Intercompany long-term notes (5,385) (2,175) 6,681 879 — Deferred taxes (231) 235 557 — 561 Long-term deferred tax and other liabilities 80 120 180 — 380 Total liabilities 5,779 86 10,502 (2,026) 14,341 Common stock 1,178 2,661 46 (2,707) 1,178 Preferred stock — — 5 (5) — Retained earnings 5,803 5,135 2,857 (7,992) 5,803 Accumulated other comprehensive earnings (loss) (910) (610) (414) 1,024 (910) Treasury stock, at cost (3,122) — — — (3,122) Total Ball Corporation equity 2,949 7,186 2,494 (9,680) 2,949 Noncontrolling interests — — 70 — 70 Total equity 2,949 7,186 2,564 (9,680) 3,019 Total liabilities and equity $ 8,728 $ 7,272 $ 13,066 $ (11,706) $ 17,360 Condensed Consolidating Balance Sheet December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 4 $ — $ 717 $ — $ 721 Receivables, net 21 613 1,168 — 1,802 Intercompany receivables 66 495 1,657 (2,218) — Inventories, net — 527 744 — 1,271 Other current assets 32 35 79 — 146 Total current assets 123 1,670 4,365 (2,218) 3,940 Noncurrent assets Property, plant and equipment, net 24 1,378 3,140 — 4,542 Investment in subsidiaries 11,145 3,779 (99) (14,825) — Goodwill — 1,191 3,284 — 4,475 Intangible assets, net 18 409 1,761 — 2,188 Other assets 213 215 981 — 1,409 Total assets $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 173 $ — $ 46 $ — $ 219 Accounts payable 50 1,178 1,867 — 3,095 Intercompany payables 2,310 49 466 (2,825) — Accrued employee costs 39 144 106 — 289 Other current liabilities 153 119 220 — 492 Total current liabilities 2,725 1,490 2,705 (2,825) 4,095 Noncurrent liabilities Long-term debt 6,504 — 6 — 6,510 Employee benefit obligations 871 286 298 — 1,455 Intercompany long-term notes (1,977) 3 1,368 606 — Deferred taxes (172) 169 648 — 645 Other liabilities 114 45 128 — 287 Total liabilities 8,065 1,993 5,153 (2,219) 12,992 Common stock 1,157 2,523 5,314 (7,837) 1,157 Preferred stock — — 5 (5) — Retained earnings 5,341 4,712 3,316 (8,028) 5,341 Accumulated other comprehensive earnings (loss) (835) (586) (460) 1,046 (835) Treasury stock, at cost (2,205) — — — (2,205) Total Ball Corporation equity 3,458 6,649 8,175 (14,824) 3,458 Noncontrolling interests — — 104 — 104 Total equity 3,458 6,649 8,279 (14,824) 3,562 Total liabilities and equity $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2019 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ (353) $ 752 $ 1,149 $ 1,548 Cash flows from investing activities Capital expenditures (17) (245) (336) (598) Proceeds from dispositions, net of cash sold — — 160 160 Other, net (5) 6 15 16 Cash provided by (used in) investing activities (22) (239) (161) (422) Cash flows from financing activities Long-term borrowings 2,813 — 6 2,819 Repayments of long-term borrowings (1,516) — (8) (1,524) Net change in short-term borrowings (174) — (9) (183) Proceeds from issuances of common stock, net of shares used for taxes 19 — — 19 Acquisitions of treasury stock (964) — — (964) Common stock dividends (182) — — (182) Intercompany 1,283 (513) (770) — Other, net (31) — — (31) Cash provided by (used in) financing activities 1,248 (513) (781) (46) Effect of exchange rate changes on cash — — (2) (2) Change in cash, cash equivalents and restricted cash 873 — 205 1,078 Cash, cash equivalents and restricted cash – beginning of period 4 — 724 728 Cash, cash equivalents and restricted cash – end of period $ 877 $ — $ 929 $ 1,806 Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ 6 $ 237 $ 1,323 $ 1,566 Cash flows from investing activities Capital expenditures (10) (431) (375) (816) Proceeds from dispositions, net of cash sold (65) 604 — 539 Other, net (4) 47 28 71 Cash provided by (used in) investing activities (79) 220 (347) (206) Cash flows from financing activities Long-term borrowings 1,475 — — 1,475 Repayments of long-term borrowings (1,525) — (8) (1,533) Net change in short-term borrowings (73) — (47) (120) Proceeds from issuances of common stock, net of shares used for taxes 28 — — 28 Acquisitions of treasury stock (739) — — (739) Common stock dividends (137) — — (137) Intercompany 1,054 (456) (598) — Other, net (11) (1) (2) (14) Cash provided by (used in) financing activities 72 (457) (655) (1,040) Effect of exchange rate changes on cash — — (51) (51) Change in cash, cash equivalents and restricted cash (1) — 270 269 Cash, cash equivalents and restricted cash – beginning of period 5 — 454 459 Cash, cash equivalents and restricted cash – end of period $ 4 $ — $ 724 $ 728 Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2017 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ 234 $ 742 $ 502 $ 1,478 Cash flows from investing activities Capital expenditures (6) (301) (249) (556) Proceeds from dispositions, net of cash sold 17 31 (50) (2) Other, net (2) 31 (16) 13 Cash provided by (used in) investing activities 9 (239) (315) (545) Cash flows from financing activities Long-term borrowings 765 — — 765 Repayments of long-term borrowings (741) — (1,069) (1,810) Net change in short-term borrowings 174 1 9 184 Proceeds from issuances of common stock, net of shares used for taxes 27 — — 27 Acquisitions of treasury stock (103) — — (103) Common stock dividends (129) — — (129) Intercompany (226) (491) 717 — Other, net — (3) (4) (7) Cash provided by (used in) financing activities (233) (493) (347) (1,073) Effect of exchange rate changes on cash (6) 1 (3) (8) Change in cash, cash equivalents and restricted cash 4 11 (163) (148) Cash, cash equivalents and restricted cash – beginning of period 1 (11) 617 607 Cash, cash equivalents and restricted cash – end of period $ 5 $ — $ 454 $ 459 |
Critical and Significant Acco_2
Critical and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Pronouncements | |
Acquisitions | Acquisitions The company records acquisitions resulting in the consolidation of an enterprise using the purchase method of accounting. Under this method, the acquiring company records the assets acquired, including intangible assets that can be identified and named, and liabilities assumed based on their estimated fair values at the date of acquisition. The purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill. If the assets acquired, net of liabilities assumed, are greater than the purchase price paid, then a bargain purchase has occurred and the company will recognize the gain immediately in earnings. Among other sources of relevant information, the company uses independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities. Various assumptions are used in the determination of these estimated fair values including discount rates, market and volume growth rates, product selling prices, production costs and other prospective financial information. Transaction costs associated with acquisitions are expensed as incurred and included in the business consolidation and other activities line of the consolidated statement of earnings. For acquisitions where the company already owns an equity investment in the acquired company, the company will recognize in earnings, upon the completion of the acquisition, a gain or loss related to the company’s existing equity investment. This gain or loss is calculated based on the fair value of the equity investment as compared to the carrying value of the existing equity investment on the date of acquisition. When the company purchases additional interests of consolidated subsidiaries that does not result in a change in control, the difference between the fair value and carrying value of the noncontrolling interests acquired is accounted for in the common stock line within shareholders' equity. |
Exit and Other Closure Costs (Business Consolidation Costs) | Exit and Other Closure Costs (Business Consolidation Costs) The company estimates its liabilities for business closure activities by accumulating detailed estimates of costs and asset sale proceeds, if any, for each business consolidation initiative. This includes the estimated costs of employee severance, pension and related benefits; impairment of property and equipment and other assets, including estimates of net realizable value; accelerated depreciation; termination payments for contracts and leases; contractual obligations; and any other qualifying costs related to the exit plan. These estimated costs are grouped by specific projects within the overall exit plan and are then monitored on a monthly basis. Such charges represent management’s best estimates, however, they require assumptions about the plans that may change over time. Changes in estimates for individual locations and other matters are evaluated periodically to determine if a change in estimate is required for the overall restructuring plan. Subsequent changes to the original estimates are included in current earnings and identified as business consolidation gains or losses. |
Recoverability of Goodwill | Recoverability of Goodwill On an annual basis and at interim periods when circumstances require, the company tests the recoverability of its goodwill. The company compares the carrying value of each identified reporting unit to its fair value. If the carrying value of the reporting unit is greater than its fair value, the company recognizes an impairment charge for the amount by which the carrying value exceeds the fair value. The company estimates fair value for each reporting unit primarily using the income approach. Under the income approach, fair value is estimated as the present value of estimated future cash flows of each reporting unit. The projected cash flows incorporate various assumptions related to weighted average cost of capital (WACC) and growth rates that are specific to each reporting unit, including assumptions relating to net sales growth rates, terminal growth rates and EBITDA (a non-U.S. GAAP measure defined by the company as earnings before interest, taxes, depreciation and amortization) margin. The company corroborates the results of its income approach using the market approach. Under the market approach, the company uses available information regarding multiples used in any recent market transactions involving transfer of controlling interests as well as publicly available trading multiples based upon the enterprise value of companies in either the packaging or aerospace and defense industries. The appropriate multiple is applied to forecasted EBITDA of each reporting unit to estimate fair value. |
Defined Benefit Pension Plans and Other Employee Benefits | Defined Benefit Pension Plans and Other Employee Benefits The company has defined benefit plans and postretirement plans that provide certain medical benefits and life insurance for retirees and eligible dependents and, to a lesser extent, participates in multi-employer defined benefit plans for which Ball is not the sponsor. For the company-sponsored plans, the relevant accounting guidance requires that management make certain assumptions relating to the long-term rate of return on plan assets, discount rates used to determine the present value of future obligations and expenses, salary inflation rates, health care cost trend rates, mortality rates and other assumptions. The company believes the accounting estimates related to the company’s pension and postretirement plans are critical accounting estimates because they are highly susceptible to change from period to period based on the performance of plan assets, actuarial valuations, market conditions and contracted benefit changes. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by the company’s actuaries. However, actual results may differ substantially from the estimates that were based on the critical assumptions. The company recognizes the funded status of each defined benefit pension plan and other postretirement benefit plans in the consolidated balance sheet. Each overfunded plan is recognized as an asset, and each underfunded plan is recognized as a liability. Pension plan obligations are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. For pension plans, accumulated actuarial gains and losses in excess of a 10 percent corridor and the prior service cost are amortized on a straight-line basis from the date recognized over the average remaining service period of active participants or the average life expectancy for plans with significant inactive participants. For other postemployment benefits, the 10 percent corridor is not used. Costs related to defined benefit and other postretirement plans are included in cost of sales and selling, general and administrative expenses, while settlement and curtailment expenses are included in business consolidation expenses. |
Income Taxes | Income Taxes Deferred income taxes reflect the future tax consequences of differences between the tax bases of assets and liabilities and their financial reporting amounts at each balance sheet date, based upon enacted income tax laws and tax rates. Income tax expense or benefit is provided based on earnings reported in the financial statements. The provision for income tax expense or benefit differs from the amounts of income taxes currently payable because certain items of income and expense included in the consolidated financial statements are recognized in different time periods by taxing authorities. Deferred tax assets, including operating loss, capital loss and tax credit carryforwards, are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that any portion of these tax attributes will not be realized. In addition, from time to time, management must assess the need to accrue or disclose uncertain tax positions for proposed adjustments from various federal, state and foreign tax authorities who regularly audit the company in the normal course of business. In making these assessments, management must often analyze complex tax laws of multiple jurisdictions, including many foreign jurisdictions. The accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The company records the related interest expense and penalties, if any, as tax expense in the tax provision. |
Derivative Financial Instruments | Derivative Financial Instruments The company uses derivative financial instruments for the purpose of hedging commercial risk exposures to fluctuations in interest rates, currency exchange rates, raw material costs and common share prices. The company’s derivative instruments are recorded in the consolidated balance sheets at fair value. The company values each derivative financial instrument either by using a single valuation technique based on observable market inputs performed internally or by obtaining valuation information from a reliable and observable market source. For a derivative designated as a cash flow hedge, the derivative's mark to fair value is initially recorded as a component of accumulated other comprehensive earnings and subsequently reclassified into earnings when the hedged item affects earnings, unless it is probable that the forecasted transaction will not occur. Derivatives that do not qualify for hedge accounting are marked to fair value with gains and losses immediately recorded in earnings. In the consolidated statements of cash flows, derivative activities are classified based on the cash flows of the items being hedged, except for those activities that are hedging the effect of exchange rate changes on cash, which are presented in investing activities. Realized gains and losses from hedges are classified in the consolidated statements of earnings consistent with the accounting treatment of the items being hedged. Upon the dedesignation of an effective derivative contract, the gains or losses are deferred in accumulated other comprehensive earnings until the originally hedged item affects earnings unless it is probable the hedged item will not occur at which time it is recognized immediately. Any gains or losses incurred after the dedesignation date are recorded in earnings immediately. |
Contingencies | Contingencies The company is subject to various legal proceedings and claims, including those that arise in the ordinary course of business. The company records loss contingencies when it determines the outcome of the future event is probable of occurring and the amount of the loss can be reasonably estimated. Gain contingencies are recognized in the financial statements when they are realized or realizable. The determination of a reserve for a loss contingency is based on management’s judgment of probability and estimates with respect to the likelihood of an outcome and valuation of the future event. Liabilities are recorded or adjusted when events or circumstances cause these judgments or estimates to change. In assessing whether a loss is probable, Ball may consider the following factors, among others: the nature of the litigation, claim or assessment; available information, opinions or views of legal counsel and other advisors; and the experience gained from similar cases by the company and others. The company provides disclosures for material contingencies when there is a reasonable possibility that a loss or an additional loss may be incurred. Actual amounts realized upon settlement of contingencies may be different than amounts recorded and disclosed, and such adjustments could have a significant impact on the company's consolidated financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Ball, its consolidated subsidiaries, and variable interest entities in which the company is considered to be the primary beneficiary. Equity investments in which the company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method of accounting. Investments in which the company neither exercises significant influence over the investee, nor is the primary beneficiary of the investment, are accounted for using the cost method of accounting. Intercompany transactions are eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified in order to conform to the current year presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. |
Inventories | Inventories Inventories are stated at the lower of cost or market using either the first-in, first-out (FIFO) cost method of accounting or the average cost method. Inventory cost is calculated for each inventory component taking into consideration the appropriate cost factors including fixed and variable overhead, material price volatility and production levels. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset or asset group may not be recoverable based on the undiscounted future cash flows of the asset. The company reviews long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified. If the carrying amount of the asset or asset group is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows or with the assistance of external appraisals, as applicable. |
Depreciation and Amortization | Depreciation and Amortization Property, plant and equipment are carried at the cost of acquisition or construction. Repairs and maintenance costs, including labor and material costs for major improvements such as annual production line overhauls, are expensed as incurred, unless those costs substantially increase the useful lives or capacity of the existing assets. Assets are depreciated and amortized using the straight-line method over their estimated useful lives, generally 5 to 40 years for buildings and improvements and 2 to 20 years for machinery and equipment. Finite-lived intangible assets, excluding capitalized software costs, are generally amortized over their estimated useful lives of 3 to 18 years. Capitalized software is generally amortized over estimated useful lives of 3 to 7 years. The company periodically reviews these estimated useful lives and when appropriate, changes are made prospectively. For certain business consolidation activities, accelerated depreciation may be required for the revised remaining useful life for assets designated to be scrapped or abandoned. The accelerated depreciation related to such activities is disclosed as part of business consolidation and other activities in the appropriate period. |
Environmental Reserves | Environmental Reserves The company estimates its liability for environmental matters based on, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. The company records the best estimate of a loss when the loss is considered probable. As additional information becomes available, the company reassesses the potential liability related to pending matters and revises the estimates. |
Revenue Recognition | Revenue Recognition in the Beverage and Aerosol Packaging Segments The company recognizes sales of products in its packaging segments when a customer obtains control of promised goods or services, which generally occurs upon shipment or delivery of goods. The company elected to apply the modified retrospective method to all contracts that were not completed as of January 1, 2018. The cumulative effect of initially applying the new revenue standard was recognized as an adjustment to the company’s retained earnings balance as of January 1, 2018. Comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. For sales recognized in 2017, the company recognized sales of products in its packaging segments when the four basic criteria of the former guidance on revenue recognition were met: delivery had occurred, title had transferred, there was persuasive evidence of an agreement or arrangement and the price was fixed or determinable and collection was reasonably assured. At contract inception, the company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer goods or services to the customer. The performance obligation may be represented by a good or service (or a series of goods or services) that is distinct, or by a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. In each instance, the company treats the promise to transfer the customer goods or services as a single performance obligation. To identify its performance obligations, the company considers all of the goods or services promised in the contract, regardless of whether they are explicitly stated or are implied by customary business practices. The company has determined that the following distinct goods and services represent separate performance obligations: ● Manufacture of beverage cans, which may be generic or unique; ● Manufacture of aerosol containers, which may be generic or unique; and ● Manufacture of beverage and aerosol lids and ends, which may be generic or unique. Performance obligations for products with no alternative use are recognized over time when the company has manufactured a unique item and has an enforceable right to payment. Conversely, generic products with alternative use are recognized at a point in time. Contracts may be short-term or long-term, with varying payment terms. Ball’s payment terms vary by the type and location of the customer and the products or services offered. Customers pay in accordance with negotiated terms, which are typically triggered upon ownership transfer. All payment terms are less than one year. For all contracts, the transaction price is determined upon establishment of the contract that contains the final terms of the sale, including the description, quantity, and price of each product or service purchased. In the context of the revenue recognition standard, enforceable contracts are those that have an enforceable right to payment, which Ball typically has once a binding forecast or purchase order (or similar evidence) is in place and Ball produces under the contract. Within Ball’s packaging segments, enforceable contracts as defined all have a duration of less than one year. Contracts that have an original duration of less than one year are excluded from the requirement to disclose remaining performance obligations, based on the company’s election to use the practical expedient. The nature of the remaining performance obligations within these contracts, as well as the nature of the variability and how it will be resolved, are described in the section below. Within the company’s beverage and aerosol operations, performance obligations are recognized both over time and at a point in time. The determination that sales should be recognized at a point in time most often results from the existence of an alternative use for the product. Cans and ends that are not customized for a customer prior to delivery are considered to have an alternative use, and sales are recognized at the point of control transfer. Determining when control transfer occurs requires management to make judgments that affect the timing of when sales are recognized. The new revenue accounting standard provides five indicators that a customer has obtained control of an asset: 1) present right to payment; 2) transfer of legal title; 3) physical possession; 4) significant risks and rewards of ownership; and 5) customer acceptance. The company considers control to have transferred for these products upon shipment or delivery, depending on the legal terms of the contract, because the company has a present right to payment at that time, the customer has legal title to the asset, the company has transferred physical possession of the asset and/or the customer has significant risks and rewards of ownership of the asset. The company determines that control transfers to a customer as described above and provides a faithful depiction of the transfer of goods. For performance obligations related to products that are specialized with no alternative use (e.g., specialized sizes or customer-specific materials, or labeled with customer-specific artwork), the company transfers control and records sales over time. The recognition of sales occurs over time as goods are manufactured and Ball has an enforceable right to payment for those goods, which is an output method. Determining a measure of progress requires management to make judgments that impact the timing of when sales are recognized. The company has determined the above provides a faithful depiction of the transfer of goods to the customer. The number of units manufactured that have an enforceable right to payment is the best measure of depicting the company’s performance as control is transferred. The customer obtains value as each unit is produced against a binding contract. The enforceable right to payment may be explicit or implied in the contract. If the enforceable right to payment is not explicit in the contract, Ball must consider if there is an implied right based on customer relationships or previous business practices and applicable law. Typically, Ball has an enforceable right to payment of costs plus a reasonable margin once a binding forecast or purchase order (or similar evidence) is in place and Ball produces under the contract. In making its determination of stand-alone selling price, Ball maximizes its use of observable inputs. Stand-alone selling price is then used to allocate total consideration proportionally to the various performance obligations within a contract. To estimate variable consideration, the company may apply both the “expected value” method and “most likely amount” method based on the form of variable consideration, after considering which method would provide the best prediction of consideration to be received from the company’s customers. The expected value method involves a probability-weighted determination of the expected amount, whereas the most likely amount method identifies the single most likely outcome in a range of possible amounts. In certain cases, both methods may be used within a single contract if multiple forms of variable consideration exist. However, once a method has been applied to one form of variable consideration, it is applied consistently throughout the contract term. The primary types of variable consideration present in the company’s contracts are per-unit price changes, volume discounts and rebates. Once variable consideration has been estimated, it will be constrained if a significant reversal of the cumulative amounts of sales is probable in the context of the contract. Revenue Recognition in the Aerospace Segment Sales under fixed-price long-term contracts in the aerospace segment are primarily recognized using percentage-of-completion accounting under the cost-to-cost method. The company elected to apply the modified retrospective method to all contracts that were not completed as of January 1, 2018. The cumulative effect of initially applying the new revenue standard was recognized as an adjustment to the company’s retained earnings balance as of January 1, 2018. Comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Sales in 2017 from the majority of the company’s aerospace business contracts were recognized over time under the cost-to-cost method based on the continuous transfer of control to the customer, which is consistent with the new revenue accounting standard and related amendments. At contract inception, the company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer goods or services to the customer. The performance obligation may be represented by a good or service (or a series of goods or services) that is distinct, or by a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. In each of these scenarios, the company treats the promise to transfer the customer goods or services as a single performance obligation. To identify its performance obligations, the company considers all of the goods or services promised in the contract, regardless of whether they are explicitly stated or are implied by customary business practices. The company has determined that the following distinct goods and services represent separate performance obligations: ● Manufacture and delivery of distinct spacecraft and/or hardware components; ● Research reports, for contracts where such reports are the sole or primary deliverable; ● Design, add-on, or special studies for contracts where such studies have stand-alone value or a material right exists due to discounted pricing; and ● Warranty and performance guarantees beyond standard repair/replacement. Performance obligations with no alternative use are recognized over time, when the company has an enforceable right to payment for efforts completed to-date. Because of sales contract payment schedules, limitations on funding, and contract terms, the company’s sales and accounts receivable generally include amounts that have been earned but not yet billed. The company’s payment terms vary by the type and location of the company’s customer and the products or services offered. All payment terms are less than one year. Contracts are often modified to account for changes in contract specifications and requirements. The company considers contract modifications to exist when the modification either creates new or revised enforceable rights and obligations. Most of the company’s contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract, and such contract modifications are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and the company’s measure of progress for the performance obligation to which it relates, is recognized as an adjustment to sales (either as an increase or reduction of sales) on a cumulative catch-up basis. Within the aerospace segment, performance obligations are recognized over time. Aerospace contracts involve specialized and unique products that are tailored to the specific needs of the customer, such as a spacecraft or other hardware conforming to the specifications required by the customer, and as such, no alternative use exists. When there is an enforceable right to payment at cost plus reasonable margin for performance completed to date, the sales are recorded over time as the goods are manufactured or services are performed. Determining a measure of progress requires management to make judgments that affect the timing of recording sales. Sales under long-term contracts in the aerospace segment are primarily recognized using percentage-of-completion accounting under the cost-to-cost method, which is an input method. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date versus the total estimated costs upon completion of the performance obligation. The cost-to-cost method best depicts the transfer of assets to the customer as the company incurs costs on the company’s contracts. The percentage-of-completion method of accounting involves the use of various estimating techniques to project revenues and costs at completion and various assumptions and projections relative to the outcome of future events, including the quantity and timing of product deliveries, future labor performance and rates, and material and overhead costs. Throughout the period of contract performance, the company regularly evaluates and, if necessary, revises estimates of total contract revenue, total contract cost, and extent of progress toward completion. The two primary types of long-term sales contracts utilized are cost-type contracts, which are agreements to perform for cost plus an agreed-upon profit component, and fixed price sales contracts, which are completed for a fixed price. Cost-type sales contracts can have different types of fee arrangements, including fixed-fee, cost, milestone and performance incentive fees, award fees or a combination thereof. At the inception of contract performance, the company estimates sales associated with base, incentive and other fees exclusive of any constraint. In other words, the company estimates sales to the extent that it is not probable a significant reversal will occur over the period of contract performance. The company has determined that the above provides a faithful depiction of the transfer of goods to the customer and is the best measure of depicting the company’s performance as control is transferred to customers. Due to the unique and customized nature of deliverables within aerospace contracts, a readily observable selling price for a similar good is not typically available; therefore, in making its determination of stand-alone selling price, the company generally applies the “expected cost plus a margin” approach (whereby the transaction price is allocated based on the relative amount of costs plus an appropriate margin). Use of the expected cost plus a margin approach requires Ball to determine the expected costs for each performance obligation, as well as an appropriate margin (i.e., cost-to-cost percentage of completion). The calculation is made at contract inception to determine the allocation of consideration. Uncertainty as to the total amount that will be paid by the customer (such as the exact amount of costs that will be incurred and fees that will be earned by us to satisfy the contractual requirements) gives rise to variable consideration. To estimate variable consideration, the company applies the “most likely amount” method or the “expected value” method depending on the nature of the variable consideration. In certain cases, both methods may be used within a single contract if multiple forms of variable consideration exist. However, once a method has been applied to one form of variable consideration, it is applied consistently throughout the contract term. The primary types of variable consideration present in the company’s contracts are cost reimbursements, performance award fees, incremental funding and finalization of government rates. These types of arrangements are most commonly (though not exclusively) estimated based on the “most likely” method. Once variable consideration has been estimated, it will be constrained if a significant reversal of the cumulative amount of sales is probable in the context of the contract. Revenue Contract Costs The company has determined there are no material costs that meet the capitalization criteria for costs to obtain or fulfill a contract. Revenue Recognition Practical Expedients For contracts that have an original duration of one year or less, the company has elected the practical expedient applicable to such contracts and has not disclosed the transaction price for future performance obligations as of the end of each reporting period or when the company expects to recognize sales. The company has also elected the sales tax practical expedient; therefore, sales and other taxes assessed by a governmental authority that are collected concurrent with revenue-producing activities are excluded from the transaction price. For shipping and handling activities performed after a customer obtains control of the goods, the company has elected to account for these costs as activities to fulfill the promise to transfer the goods; therefore, these activities are not assessed as separate performance obligations. The company has also elected the significant financing component practical expedient which allows management to not assess whether the contract has a significant financing component in circumstances where, at contract inception, the expected contract duration is less than one year. Disaggregation of Sales The company disaggregates net sales by reportable segments, as disclosed in Note 3, and based on the timing of transfer of control for goods and services, as disclosed in Note 5. The transfer of control for goods and services may occur at a point in time or over time; in other words, sales may be recognized over the course of the underlying contract, or they may occur at a single point in time based upon the transfer of control. The company determined that disaggregating sales into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of sales and cash flows are affected by economic factors. As disclosed in Note 3, the company’s business consists of four reportable segments, which encompass disaggregated product lines and geographical areas: (1) beverage packaging, North and Central America; (2) beverage packaging, South America; (3) beverage packaging, Europe; and (4) aerospace. Revenue Contract Balances The company enters into contracts to sell beverage packaging, aerosol packaging, and aerospace products. The payment terms and conditions in customer contracts vary. Those customers that prepay are represented by the contract liabilities shown in Note 5, until the company’s performance obligations are satisfied. Contract assets would exist when sales have been recorded (i.e., control of the goods or services has been transferred to the customer) but customer payment is contingent on a future event beyond the passage of time (i.e., satisfaction of additional performance obligations). Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional. |
Fair Value Measurements | Fair Value Measurements Generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and such principles also establish a fair value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): ● Level 1–Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2–Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means. ● Level 3–Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable. |
Stock-Based Compensation | Stock-Based Compensation Ball has a variety of restricted stock, stock option, and stock-settled appreciation rights (SSARs) plans, and the related stock-based compensation is primarily reported as part of selling, general and administrative expenses in the consolidated statements of earnings. The compensation expense associated with restricted stock grants is calculated using the fair value at the date of grant (closing stock price) and is amortized over the restriction period. For stock options and SSARs, the company has elected to use the Black-Scholes valuation model and amortizes the estimated fair value, determined at the date of grant, on a straight-line basis over the requisite service period (generally the vesting period). The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is valued at the closing price of the company’s common stock at the end of each reporting period. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred in connection with the company’s programs for the development of products and processes. Costs incurred in connection with these programs, the majority of which are included in cost of sales, amounted to $44 million, $32 million and $27 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Currency Translation | Currency Translation Assets and liabilities of foreign operations with a functional currency other than the U.S. dollar are translated using period-end exchange rates, and revenues and expenses are translated using average exchange rates during each period. Translation gains and losses are reported in accumulated other comprehensive earnings (loss) as a component of shareholders’ equity. |
Accounting Pronouncements (Tabl
Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ASU 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of impact of adoption of new lease standard on assets and liabilities | ($ in millions) Balance at December 31, 2018 Adjustments Due to Adoption Balance at January 1, 2019 Assets: Other current assets $ 140 $ (1) $ 139 Operating lease right-of-use assets (a) — 244 244 Other assets 1,409 (25) 1,384 Liabilities: Other current liabilities $ 492 $ (3) $ 489 Current operating lease liabilities (b) — 53 53 Other liabilities 287 (14) 273 Noncurrent operating lease liabilities (b) — 182 182 (a) Operating lease right-of-use assets are recognized within other assets in Ball’s consolidated balance sheets. (b) Current and noncurrent operating lease liabilities are recognized within other current liabilities and other liabilities, respectively, in Ball’s consolidated balance sheets. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Segment Information | |
Schedule of major customers | 2019 2018 2017 U.S. Government 13 % 10 % 9 % Anheuser-Busch InBev and affiliates 12 % 13 % 14 % Coca-Cola Bottlers' Sales & Services Company LLC and affiliates 9 % 12 % 11 % |
Summary of net sales and long lived assets by geographic area | Summary of Net Sales by Geographic Area (a) ($ in millions) U.S. Brazil Other Consolidated 2019 $ 5,747 $ 1,351 $ 4,376 $ 11,474 2018 5,783 1,380 4,472 11,635 2017 5,496 1,427 4,060 10,983 (a) Revenue is attributed based on origin of sale and includes intercompany eliminations. Summary of Net Long-Lived Assets by Geographic Area (a) ($ in millions) U.S. Brazil U.K. Other Consolidated As of December 31, 2019 $ 2,024 $ 750 $ 626 $ 2,655 $ 6,055 As of December 31, 2018 1,708 865 701 2,677 5,951 (a) Long-lived assets exclude goodwill and intangible assets. |
Summary of business by segment | Years Ended December 31, ($ in millions) 2019 2018 2017 Net sales Beverage packaging, North and Central America $ 4,758 $ 4,626 $ 4,178 Beverage packaging, South America 1,670 1,701 1,692 Beverage packaging, Europe 2,651 2,619 2,360 Aerospace 1,479 1,196 991 Reportable segment sales 10,558 10,142 9,221 Other 916 1,493 1,762 Net sales $ 11,474 $ 11,635 $ 10,983 Comparable operating earnings Beverage packaging, North and Central America $ 555 $ 551 $ 533 Beverage packaging, South America 288 313 333 Beverage packaging, Europe 308 282 233 Aerospace 140 113 98 Reportable segment comparable operating earnings 1,291 1,259 1,197 Reconciling items Other (a) 40 31 23 Business consolidation and other activities (244) (191) (221) Amortization of acquired Rexam intangibles (155) (164) (162) Catch-up depreciation and amortization for 2016 from finalization of Rexam valuation — — (35) Earnings before interest and taxes 932 935 802 Interest expense (317) (301) (285) Debt refinancing and other costs (7) (1) (3) Total interest expense (324) (302) (288) Earnings before taxes 608 633 514 (a) Includes undistributed corporate expenses, net, of $54 million, $85 million and $128 million for the years ended December 2019, 2018 and 2017, respectively. Years Ended December 31, ($ in millions) 2019 2018 2017 Depreciation and amortization (a) Beverage packaging, North and Central America $ 190 $ 184 $ 179 Beverage packaging, South America 136 131 144 Beverage packaging, Europe 231 238 254 Aerospace 43 33 31 Reportable segment depreciation and amortization 600 586 608 Other 78 116 121 Depreciation and amortization $ 678 $ 702 $ 729 Capital expenditures Beverage packaging, North and Central America $ 139 $ 322 $ 283 Beverage packaging, South America 150 106 36 Beverage packaging, Europe 144 194 81 Aerospace 96 130 70 Reportable segment capital expenditures 529 752 470 Other 69 64 86 Capital expenditures $ 598 $ 816 $ 556 (a) Includes amortization of acquired Rexam intangibles. |
Revenue from Contracts With C_2
Revenue from Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer | |
Schedule of the disaggregation of revenue by timing of transfer of control | Year Ended December 31, 2019 ($ in millions) Point in Time Over Time Total Total net sales $ 2,220 $ 9,254 $ 11,474 Year Ended December 31, 2018 ($ in millions) Point in Time Over Time Total Total net sales $ 2,634 $ 9,001 $ 11,635 |
Schedule of balances of contract liabilities | Contract Contract Liabilities Liabilities ($ in millions) (Current) (Noncurrent) Balance at December 31, 2017 $ 45 $ — Increase — 8 Balance at December 31, 2018 $ 45 $ 8 Increase 42 1 Balance at December 31, 2019 $ 87 $ 9 |
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 December 31, 2019 $ 1,409 $ 1,067 $ 2,476 |
Business Consolidation and Ot_2
Business Consolidation and Other Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Consolidation and Other Activities | |
Summary of business consolidation and other activity (charges) / income included in the condensed consolidated statements of earnings | Years Ended December 31, ($ in millions) 2019 2018 2017 Beverage packaging, North and Central America $ (14) $ (6) $ (47) Beverage packaging, South America 15 11 (5) Beverage packaging, Europe (39) (49) (89) Other (206) (147) (80) $ (244) $ (191) $ (221) |
Supplemental Cash Flow Statem_2
Supplemental Cash Flow Statement Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Statement Disclosures | |
Schedule of cash, cash equivalents and restricted cash | December 31, ($ in millions) 2019 2018 Beginning of period: Cash and cash equivalents $ 721 $ 448 Current restricted cash (included in other current assets) 7 10 Noncurrent restricted cash (included in other assets) — 1 Total cash, cash equivalents and restricted cash $ 728 $ 459 End of period: Cash and cash equivalents $ 1,798 $ 721 Current restricted cash (included in other current assets) 8 7 Total cash, cash equivalents and restricted cash $ 1,806 $ 728 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables, Net | |
Schedule of receivables | December 31, December 31, ($ in millions) 2019 2018 Trade accounts receivable $ 647 $ 812 Unbilled receivables 556 478 Less allowance for doubtful accounts (17) (10) Net trade accounts receivable 1,186 1,280 Other receivables 445 522 $ 1,631 $ 1,802 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories, Net | |
Schedule of inventories | December 31, December 31, ($ in millions) 2019 2018 Raw materials and supplies $ 808 $ 727 Work-in-process and finished goods 548 614 Less: Inventory reserves (82) (70) $ 1,274 $ 1,271 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net. | |
Schedule of property, plant and equipment | December 31, December 31, ($ in millions) 2019 2018 Land $ 153 $ 159 Buildings 1,433 1,359 Machinery and equipment 5,513 5,250 Construction-in-progress 434 509 7,533 7,277 Accumulated depreciation (3,063) (2,735) $ 4,470 $ 4,542 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets, Net | |
Schedule of goodwill | ($ in millions) Beverage Beverage Beverage Aerospace Other Total Balance at December 31, 2017 $ 1,275 $ 1,299 $ 1,531 $ 40 $ 788 $ 4,933 Opening balance sheet adjustments — — 4 — — 4 Business dispositions — — — — (354) (354) Effects of currency exchange — — (100) — (8) (108) Balance at December 31, 2018 $ 1,275 $ 1,299 $ 1,435 $ 40 $ 426 $ 4,475 Opening balance sheet adjustments — (1) — — — (1) Business dispositions — — — — (52) (52) Effects of currency exchange — — (2) — (1) (3) Balance at December 31, 2019 $ 1,275 $ 1,298 $ 1,433 $ 40 $ 373 $ 4,419 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets, Net | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, ($ in millions) 2019 2018 Acquired Rexam customer relationships and other Rexam intangibles (net of accumulated amortization of $567 million at December 31, 2019, and $399 million at December 31, 2018) $ 1,909 $ 2,073 Capitalized software (net of accumulated amortization of $170 million at December 31, 2019, and $148 million at December 31, 2018) 69 82 Other intangibles (net of accumulated amortization of $116 million at December 31, 2019, and $112 million at December 31, 2018) 24 33 $ 2,002 $ 2,188 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets.. | |
Schedule of other assets | December 31, December 31, ($ in millions) 2019 2018 Long-term deferred tax assets $ 241 $ 237 Long-term pension assets 437 559 Investments in affiliates 291 302 Right-of-use operating lease assets 239 — Other 377 311 $ 1,585 $ 1,409 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of components of lease expense | Year Ended ($ in millions) December 31, 2019 Operating lease expense $ (67) Variable lease expense (10) Sublease income 3 Net lease expense $ (74) |
Schedule of supplemental cash flow information related to leases | Year Ended ($ in millions) December 31, 2019 Cash paid for amounts included in the measurements of lease liabilities - Operating cash outflows for operating leases $ (62) ROU assets obtained in exchange for operating lease obligations 35 |
Schedule of supplemental balance sheet information related to leases | ($ in millions) Balance Sheet Location December 31, 2019 Operating lease ROU asset Other assets $ 239 Current operating lease liabilities Other current liabilities 58 Noncurrent operating lease liabilities Other liabilities 181 |
Schedule of weighted average remaining lease term and weighted average discount rate of operating leases | December 31, 2019 Weighted average remaining lease term in years 10 Weighted average discount rate (%) 4.3 |
Schedule of the maturities of lease liabilities | ($ in millions) Operating Leases 2020 $ 66 2021 52 2022 43 2023 32 2024 21 Thereafter 88 Future value of lease liabilities 302 Less: Imputed interest (63) Present value of lease liabilities $ 239 |
Schedule of noncancelable operating leases | ($ in millions) 2019 $ 66 2020 52 2021 41 2022 34 2023 25 Thereafter 87 Total future lease payments $ 305 |
Debt and Interest Costs (Tables
Debt and Interest Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Schedule of long-term debt | December 31, December 31, ($ in millions) 2019 2018 Senior Notes 5.25% due July 2025 $ 1,000 $ 1,000 4.375% due December 2020 1,000 1,000 4.00% due November 2023 1,000 1,000 4.375%, euro denominated, due December 2023 785 803 5.00% due March 2022 750 750 4.875% due March 2026 750 750 3.50%, euro denominated, due December 2020 449 459 1.50%, euro denominated, due March 2027 617 — 0.875%, euro denominated, due March 2024 841 — Senior Credit Facility (at variable rates) Term A loan, due June 2024 (2019 - 3.94%) 653 — Term A loan, due June 2021 (2018 - 4.02%) — 797 Other (including debt issuance costs) (54) (41) 7,791 6,518 Less: Current portion of long-term debt (1,454) (8) $ 6,337 $ 6,510 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes on Income | |
Schedule of amount of earnings (loss) before income taxes | Years Ended December 31, ($ in millions) 2019 2018 2017 U.S. $ 224 $ 193 $ 147 Foreign 384 440 367 $ 608 $ 633 $ 514 |
Schedule of provision (benefit) for income tax expense | Years Ended December 31, ($ in millions) 2019 2018 2017 Current U.S. $ (1) $ 30 $ 6 State and local 7 5 — Foreign 110 115 77 Total current 116 150 83 Deferred U.S. (26) 21 92 State and local (1) 9 7 Foreign (18) 5 (17) Total deferred (45) 35 82 Tax provision (benefit) $ 71 $ 185 $ 165 |
Schedule of income tax provision recorded within the consolidated statements of earnings which differ from the provisions determined by applying the U.S. statutory tax rate to pretax earnings | Years Ended December 31, ($ in millions) 2019 2018 2017 Statutory U.S. federal income tax $ 128 $ 133 $ 180 Increase (decrease) due to: Foreign tax rate differences including tax holidays (11) (11) (52) Foreign tax law and rate changes — — (28) U.S. tax reform (a) — (45) 83 Foreign exchange loss on revaluation of Brazilian deferred tax balances 4 26 — Global intangible low-taxed income (GILTI) 12 15 — Permanent differences on business dispositions (3) 56 18 U.S. state and local taxes, net 4 13 3 U.S. taxes on foreign earnings, net of tax deductions and credits (6) (9) (6) U.S. manufacturing deduction — — (8) U.S. research and development tax credits (10) (7) (9) Uncertain tax positions, including interest (19) (1) (3) Change in valuation allowances 24 31 15 Equity compensation related impacts (43) (14) (16) Other, net (9) (2) (12) Provision (benefit) for taxes $ 71 $ 185 $ 165 Effective tax rate expressed as a percentage of pretax earnings 11.7 % 29.2 % 32.1 % (a) Includes 2018 adjustments required to record the final impact of the implications of the U.S. Tax Cuts and Jobs Act signed into law in 2017. |
Schedule of significant components of deferred tax assets and liabilities | December 31, ($ in millions) 2019 2018 Deferred tax assets: Deferred compensation $ 90 $ 73 Accrued employee benefits 93 100 Accrued pensions 190 179 Inventory and other reserves 42 41 Net operating losses, foreign tax credits and other tax attributes 408 390 Unrealized losses on currency exchange and derivative transactions 6 26 Goodwill and other intangible assets 54 64 Other 168 110 Total deferred tax assets 1,051 983 Valuation allowance (244) (224) Net deferred tax assets 807 759 Deferred tax liabilities: Property, plant and equipment (330) (336) Goodwill and other intangible assets (586) (621) Pension assets (74) (90) Other (137) (120) Total deferred tax liabilities (1,127) (1,167) Net deferred tax asset (liability) $ (320) $ (408) |
Schedule of net deferred tax asset (liability) included in consolidated balance sheets | December 31, ($ in millions) 2019 2018 Other assets $ 241 $ 237 Deferred taxes (561) (645) Net deferred tax asset (liability) $ (320) $ (408) |
Roll forward of unrecognized tax benefits related to uncertain income tax positions | ($ in millions) 2019 2018 2017 Balance at January 1 $ 80 $ 84 $ 77 Additions based on tax positions related to the current year — 14 18 Additions for tax positions of prior years — — 1 Reductions for tax positions from prior years — (4) — Reductions for settlements — — (7) Reductions due to lapse of statute of limitations (16) (10) (12) Effect of foreign currency exchange rates (1) (4) 7 Balance at December 31 $ 63 $ 80 $ 84 |
Employee Benefit Obligations (T
Employee Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Obligations | |
Schedule of employee benefit obligations | December 31, December 31, ($ in millions) 2019 2018 Underfunded defined benefit pension liabilities $ 918 $ 954 Less: Current portion (24) (25) Long-term defined benefit pension liabilities 894 929 Long-term retiree medical liabilities 156 157 Deferred compensation plans 362 291 Other 74 78 $ 1,486 $ 1,455 |
Analysis of change in benefit accruals | December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Change in projected benefit obligation: Benefit obligation at prior year end $ 2,579 $ 2,991 $ 5,570 $ 3,061 $ 3,432 $ 6,493 Service cost 50 11 61 51 14 65 Interest cost 101 72 173 99 72 171 Benefits paid (205) (191) (396) (191) (194) (385) Net actuarial (gains) losses 324 391 715 (189) (210) (399) Curtailments and settlements including special termination benefits — (34) (a) (34) (252) (a) — (252) Plan amendments — — — — 52 52 Other — 1 1 — 2 2 Effect of exchange rates — 107 107 — (177) (177) Benefit obligation at year end 2,849 3,348 6,197 2,579 2,991 5,570 Change in plan assets: Fair value of assets at prior year end 1,901 3,274 5,175 2,420 3,632 6,052 Actual return on plan assets 313 311 624 (119) 3 (116) Employer contributions 188 4 192 32 6 38 Contributions to unfunded plans 6 18 24 7 20 27 Benefits paid (205) (191) (396) (191) (194) (385) Curtailments and settlements including special termination benefits — (34) (a) (34) (256) (a) — (256) Other (1) 1 — 8 2 10 Effect of exchange rates — 131 131 — (195) (195) Fair value of assets at end of year 2,202 3,514 5,716 1,901 3,274 5,175 Funded status $ (647) $ 166 $ (481) $ (678) $ 283 $ (395) (a) Includes the purchase of non-participating group annuity contracts discussed below. |
Schedule of amounts recognized in accumulated other comprehensive (earnings) loss, including other post employment benefits | December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Net actuarial (loss) gain $ (683) $ (31) $ (714) $ (563) $ 140 $ (423) Net prior service (cost) credit 15 (49) (34) 16 (50) (34) Tax effect and currency exchange rates 174 16 190 216 (36) 180 $ (494) $ (64) $ (558) $ (331) $ 54 $ (277) |
Summary of fair value measurement levels assigned to domestic plan assets | December 31, 2019 ($ in millions) Level 1 Level 2 Total U.S. pension assets, at fair value: Cash and cash equivalents $ — $ 99 $ 99 Corporate equity securities: Consumer discretionary 83 — 83 Financials 64 — 64 Healthcare 63 — 63 Industrials 76 — 76 Information technology 111 — 111 Utilities 48 — 48 Other 18 — 18 U.S. government, agency and asset-backed securities: FHLMC mortgage backed securities — 42 42 FNMA mortgage backed securities — 73 73 Municipal bonds — 27 27 Treasury bonds 69 — 69 Other — 45 45 Corporate bonds and notes: Communications — 79 79 Consumer discretionary — 99 99 Consumer staples — 100 100 Financials — 261 261 Healthcare — 91 91 Industrials — 101 101 Information technology — 78 78 Oil and gas — 91 91 Private placement — 62 62 Utilities — 101 101 Other — 50 50 Commingled funds 22 81 103 Total level 1 and level 2 $ 554 $ 1,480 2,034 Other investments measured at net asset value (a) 168 Total assets $ 2,202 (a) Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified within the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation. December 31, 2018 ($ in millions) Level 1 Level 2 Total U.S. pension assets, at fair value: Cash and cash equivalents $ 1 $ 97 $ 98 Corporate equity securities: Consumer discretionary 61 — 61 Financials 54 — 54 Healthcare 49 — 49 Industrials 59 — 59 Information technology 73 — 73 Other 50 — 50 U.S. government and agency securities: FHLMC mortgage backed securities — 40 40 FNMA mortgage backed securities — 65 65 Municipal bonds — 52 52 Treasury bonds 45 — 45 Other — 10 10 Corporate bonds and notes: Communications — 67 67 Consumer discretionary — 80 80 Consumer staples — 41 41 Financials — 245 245 Healthcare — 88 88 Industrials — 100 100 Information technology — 54 54 Oil and gas — 103 103 Private placement — 69 69 Utilities — 88 88 Other — 60 60 Commingled funds 18 72 90 Total level 1 and level 2 $ 410 $ 1,331 1,741 Other investments measured at net asset value (a) 160 Total assets $ 1,901 (a) Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented within this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation. December 31, ($ in millions) 2019 2018 U.K. pension assets, at fair value: Cash and cash equivalents $ 40 $ 20 Equity commingled funds 162 — U.K. government bonds 2,576 2,229 Other 28 33 Total level 1 2,806 2,282 Level 2: Investment funds - corporate bonds 478 — Other investments measured at net asset value (a) 173 913 Total assets $ 3,457 $ 3,195 (a) Certain investments measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified within the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the change in plan assets reconciliation. |
Summary of fair value measurement levels assigned to foreign plan assets | |
Defined Benefit Pension Plans | |
Employee Benefit Obligations | |
Schedule of amounts recognized in the consolidated balance sheets | December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Long-term pension asset $ — $ 437 $ 437 $ — $ 559 $ 559 Defined benefit pension liabilities (a) (647) (271) (918) (678) (276) (954) Funded status $ (647) $ 166 $ (481) $ (678) $ 283 $ (395) (a) Included is an unfunded, non-qualified U.S. plan obligation of $32 million at December 31, 2019, that has been annuitized with a corresponding asset of $27 million ( $3 million in other current assets and $24 million in other assets). At December 31, 2018, the unfunded non-qualified U.S. plan obligation of $30 million was annuitized with a corresponding asset of $30 million ($3 million in other current assets and $27 million in other assets). |
Summary of information for plans with an accumulated benefit obligation in excess of plan assets | December 31, 2019 2018 ($ in millions) U.S. Foreign Total U.S. Foreign Total Projected benefit obligation $ 2,849 $ 328 $ 3,177 $ 2,579 $ 354 $ 2,933 Accumulated benefit obligation 2,769 324 3,093 2,519 351 2,870 Fair value of plan assets (a) 2,202 57 2,259 1,901 79 1,980 (a) The German, Swedish and certain U.S. plans are unfunded and, therefore, there is no fair value of plan assets associated with these plans. |
Components of net periodic benefit cost | Years Ended December 31, 2019 2018 2017 ($ in millions) U.S. Foreign Total U.S. Foreign Total U.S. Foreign Total Ball-sponsored plans: Service cost $ 50 $ 11 $ 61 $ 51 $ 14 $ 65 $ 49 $ 17 $ 66 Interest cost 101 72 173 99 72 171 124 92 216 Expected return on plan assets (116) (109) (225) (108) (108) (216) (126) (110) (236) Amortization of prior service cost 1 3 4 2 — 2 2 — 2 Recognized net actuarial loss 22 4 26 33 5 38 34 5 39 Settlement losses — 8 8 36 — 36 47 (1) 46 Net periodic benefit cost for Ball sponsored plans 58 (11) 47 113 (17) 96 130 3 133 Net periodic benefit cost for multi-employer plans 1 — 1 2 — 2 2 — 2 Total net periodic benefit cost $ 59 $ (11) $ 48 $ 115 $ (17) $ 98 $ 132 $ 3 $ 135 |
Schedule of target asset allocations established | U.S. Legacy Ball Legacy Rexam U.K. Cash and cash equivalents 0-10 % 0-10 % 60-100 % (c) Equity securities 10-75 % (a) 10-25 % (d) 0-20 % Fixed income securities 25-70 % (b) 75-90 % 60-100 % (c) Alternative investments 0-35 % — % 0-20 % (a) Equity securities may consist of: (1) up to 25 percent large cap equities, (2) up to 10 percent mid cap equities, (3) up to 10 percent small cap equities, (4) up to 35 percent foreign equities and (5) up to 35 percent special equities. Holdings in Ball Corporation common stock or Ball bonds cannot exceed 5 percent of the trust’s assets. (b) Debt securities may include up to 10 percent non-investment grade bonds, up to 10 percent bank loans and up to 15 percent international bonds. (c) The combined target allocation for fixed income securities and cash and cash equivalents is 60 to 100 percent. (d) Equity securities may consist of: (1) up to 20 percent domestic equities, (2) up to 10 percent international equities, and (3) up to 10 percent private equities. |
Schedule of actual weighted average asset allocations | 2019 2018 Cash and cash equivalents 2 % 2 % Equity securities 17 % 28 % Fixed income securities 79 % 69 % Alternative investments 2 % 1 % 100 % 100 % |
Defined Benefit Pension Plans | US Plan | |
Employee Benefit Obligations | |
Summary of weighted average assumptions used to determine benefit obligations | U.S. 2019 2018 2017 Discount rate 3.35 % 4.41 % 3.72 % Rate of compensation increase 4.03 % 4.02 % 4.15 % |
Summary of weighted average assumptions used to determine net periodic benefit cost | U.S. 2019 2018 2017 Discount rate 4.41 % 3.72 % 4.27 % Rate of compensation increase 4.02 % 4.15 % 4.14 % Expected long-term rate of return on assets 5.58 % 5.14 % 5.50 % |
Defined Benefit Pension Plans | Europe | |
Employee Benefit Obligations | |
Summary of weighted average assumptions used to determine benefit obligations | U.K. Germany 2019 2018 2017 2019 2018 2017 Discount rate 2.07 % 2.90 % 2.55 % 1.11 % 1.74 % 1.68 % Rate of compensation increase 3.50 % 3.50 % 4.41 % 2.50 % 2.50 % 2.50 % Pension increase 3.22 % 3.45 % 3.41 % 1.50 % 1.50 % 1.50 % |
Summary of weighted average assumptions used to determine net periodic benefit cost | U.K. Germany 2019 2018 2017 2019 2018 2017 Discount rate 2.90 % 2.55 % 2.70 % 1.74 % 1.68 % 1.52 % Rate of compensation increase 3.50 % 4.41 % 4.30 % 2.50 % 2.50 % 2.50 % Pension increase 3.45 % 3.41 % 3.41 % 1.50 % 1.50 % 1.50 % Expected long-term rate of return on assets 3.40 % 3.05 % 3.20 % N/A N/A N/A |
Other post retirement benefits | |
Employee Benefit Obligations | |
Summary of weighted average assumptions used to determine benefit obligations | U.S. Canada 2019 2018 2017 2019 2018 2017 Discount rate 3.24 % 4.35 % 3.64 % 3.00 % 3.50 % 3.25 % Rate of compensation increase (a) 4.50 % 4.50 % 4.50 % N/A N/A N/A (a) The rate of compensation increase is not applicable for certain U.S. other postretirement benefit plans. |
Summary of weighted average assumptions used to determine net periodic benefit cost | U.S. Canada 2019 2018 2017 2019 2018 2017 Discount rate 4.35 % 3.64 % 4.16 % 3.50 % 3.25 % 3.50 % Rate of compensation increase (a) 4.50 % 4.50 % 4.50 % N/A N/A N/A (a) The rate of compensation increase is not applicable for certain U.S. other postretirement benefit plans. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity and Accumulated Other Comprehensive Earnings | |
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, 2017 $ (307) $ (362) $ 13 $ (656) Other comprehensive earnings (loss) before reclassifications (197) 33 25 (139) Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 52 (92) (40) Balance at December 31, 2018 $ (504) $ (277) $ (54) $ (835) Other comprehensive earnings (loss) before reclassifications 119 (223) 67 (37) Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings — 18 (22) (4) Currency translation recognized in earnings from the sale of the Argentina steel aerosol business 45 — — 45 Stranded tax effects reclassified into retained earnings — (76) (3) (79) Balance at December 31, 2019 $ (340) $ (558) $ (12) $ (910) |
Information related to amounts reclassified into net earnings from accumulated other comprehensive earnings (loss) | Years Ended December 31, ($ in millions) 2019 2018 2017 Gains (losses) on cash flow hedges: Commodity contracts recorded in net sales $ 18 $ 1 $ (7) Commodity contracts recorded in cost of sales (45) 54 50 Currency exchange contracts recorded in selling, general and administrative 7 1 (1) Cross-currency swaps recorded in selling, general and administrative 35 49 (136) Cross-currency swaps recorded in interest expense 12 14 16 Interest rate contracts recorded in interest expense 1 — — Total before tax effect 28 119 (78) Tax benefit (expense) on amounts reclassified into earnings (6) (27) 13 Recognized gain (loss), net of tax $ 22 $ 92 $ (65) Amortization of pension and other postretirement benefits: (a) Prior service income (expense) $ (2) $ (1) $ (1) Actuarial gains (losses) (14) (32) (34) Effect of pension settlements (8) (36) (44) Total before tax effect (24) (69) (79) Tax benefit (expense) on amounts reclassified into earnings 6 17 30 Recognized gain (loss), net of tax $ (18) $ (52) $ (49) (a) These components include the computation of net periodic benefit cost detailed in Note 17. |
Stock-Based Compensation Prog_2
Stock-Based Compensation Programs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation Programs | |
Summary of stock option activity | Number of Weighted Average Shares Exercise Price Beginning of year 15,175,811 $ 27.45 Granted 1,624,395 51.42 Exercised (4,173,273) 21.19 Canceled/forfeited (241,473) 42.13 End of period 12,385,460 32.41 Vested and exercisable, end of year 7,957,900 $ 26.82 Reserved for future grants 19,641,712 |
Schedule of weighted average assumptions used for estimating fair values of options | 2019 Grants 2018 Grants 2017 Grants Expected dividend yield 0.79 % 1.03 % 0.89 % Expected stock price volatility 20.36 % 21.98 % 19.62 % Risk-free interest rate 2.59 % 2.47 % 2.00 % Expected life of options (in years) 6.40 years 6.10 years 5.94 years |
Summary of restricted stock activity | Weighted Number of Average Shares/Units Grant Price Beginning of year 2,875,294 $ 34.17 Granted 543,384 45.88 Vested (871,225) 30.83 Canceled/forfeited (108,717) 39.68 End of year 2,438,736 $ 37.73 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings and Dividends Per Share | |
Schedule of earnings per share | Years Ended December 31, ($ in millions, except per share amounts; shares in thousands) 2019 2018 2017 Net earnings attributable to Ball Corporation $ 566 $ 454 $ 374 Basic weighted average common shares 331,102 344,796 350,269 Effect of dilutive securities 9,019 7,525 6,716 Weighted average shares applicable to diluted earnings per share 340,121 352,321 356,985 Per basic share $ 1.71 $ 1.32 $ 1.07 Per diluted share $ 1.66 $ 1.29 $ 1.05 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Risk Management | |
Schedule of fair value of derivative instruments | December 31, 2019 ($ in millions) Balance Sheet Location Derivatives Derivatives not Total Assets: Commodity contracts $ 7 $ 1 $ 8 Foreign currency contracts 4 43 47 Other contracts 2 — 2 Total current derivative contracts Other current assets $ 13 $ 44 $ 57 Foreign currency contracts $ 15 $ — $ 15 Other contracts 1 — 1 Total noncurrent derivative contracts Other noncurrent assets $ 16 $ — $ 16 Liabilities: Commodity contracts $ 26 $ 1 $ 27 Foreign currency contracts — 18 18 Other contracts — 19 19 Total current derivative contracts Other current liabilities $ 26 $ 38 $ 64 Commodity contracts $ 1 $ — $ 1 Total noncurrent derivative contracts Other noncurrent liabilities $ 1 $ — $ 1 December 31, 2018 Derivatives Derivatives not Total Assets: Commodity contracts $ 9 $ 1 $ 10 Foreign currency contracts — 21 21 Cross-currency and other contracts — 5 5 Total current derivative contracts Other current assets $ 9 $ 27 $ 36 Liabilities: Commodity contracts $ 42 $ 11 $ 53 Foreign currency contracts 2 4 6 Cross-currency and other contracts 1 2 3 Total current derivative contracts Other current liabilities $ 45 $ 17 $ 62 Commodity contracts $ 2 $ — $ 2 Cross-currency and other contracts 62 — 62 Total noncurrent derivative contracts Other noncurrent liabilities $ 64 $ — $ 64 |
Schedule of impact on earnings from derivative instruments | Year Ended December 31, 2019 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 18 $ — Commodity contracts - manage exposure to supplier pricing Cost of sales (45) 2 Interest rate contracts - manage exposure for outstanding debt Interest expense 1 — Foreign currency contracts - manage currency exposure Selling, general and administrative 7 111 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 35 — Cross-currency swaps - manage intercompany currency exposure Interest expense 12 — Equity contracts Selling, general and administrative — 46 Total $ 28 $ 159 Year Ended December 31, 2018 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ 1 $ 1 Commodity contracts - manage exposure to supplier pricing Cost of sales 54 8 Foreign currency contracts - manage currency exposure Selling, general and administrative 1 70 Cross-currency swaps - manage intercompany currency exposure Selling, general and administrative 49 — Cross-currency swaps - manage intercompany currency exposure Interest expense 14 — Equity contracts Selling, general and administrative — 19 Total $ 119 $ 98 Year Ended December 31, 2017 ($ in millions) Location of Gain (Loss) Cash Flow Gain (Loss) on Commodity contracts - manage exposure to customer pricing Net sales $ (7) $ (4) Commodity contracts - manage exposure to supplier pricing Cost of sales 50 (5) Foreign currency contracts - manage general exposure with the business Selling, general and administrative (1) (57) Cross-currency swaps - manage intercompany currency exposure within the business Selling, general and administrative (136) — Cross-currency swaps - manage intercompany currency exposure within the business Interest expense 16 — Equity contracts Selling, general and administrative — (1) Total $ (78) $ (67) |
Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives | Years Ended December 31, ($ in millions) 2019 2018 2017 Amounts reclassified into earnings: Commodity contracts $ 27 $ (55) $ (43) Cross-currency swap contracts (47) (63) 120 Interest rate contracts (1) — — Currency exchange contracts (7) (1) 1 Change in fair value of cash flow hedges: Commodity contracts (10) (31) 67 Interest rate contracts 1 — — Cross-currency swap contracts 78 69 (137) Currency exchange contracts 17 (5) 7 Foreign currency and tax impacts (13) 19 20 Stranded tax effects reclassified into retained earnings: Commodity contracts 2 — — Cross-currency swap contracts (5) — — $ 42 $ (67) $ 35 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results of Operations (Unaudited) | |
Schedule of quarterly results of operations | ($ in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total 2019 Net sales $ 2,785 $ 3,017 $ 2,953 $ 2,719 $ 11,474 Gross profit (a) 407 463 468 437 1,775 Earnings before taxes $ 140 $ 226 $ 119 $ 123 $ 608 Net earnings (loss) attributable to Ball Corporation $ 117 $ 197 $ 92 $ 160 $ 566 Basic earnings (loss) per share (b) $ 0.35 $ 0.59 $ 0.28 $ 0.49 $ 1.71 Diluted earnings (loss) per share (b) $ 0.34 $ 0.58 $ 0.27 $ 0.48 $ 1.66 First Quarter Second Quarter Third Quarter Fourth Quarter Total 2018 Net sales $ 2,785 $ 3,101 $ 2,946 $ 2,803 $ 11,635 Gross profit (a) 418 483 466 431 1,798 Earnings before taxes $ 152 $ 166 $ 192 $ 123 $ 633 Net earnings attributable to Ball Corporation $ 125 $ 119 $ 59 $ 151 $ 454 Basic earnings per share (b) $ 0.36 $ 0.34 $ 0.17 $ 0.45 $ 1.32 Diluted earnings per share (b) $ 0.35 $ 0.34 $ 0.17 $ 0.44 $ 1.29 (a) Gross profit is shown after depreciation and amortization related to cost of sales of $488 million and $509 million for the years ended December 31, 2019 and 2018, respectively. (b) Earnings per share calculations for each quarter are based on the weighted average shares outstanding for that period. As a result, the sum of the quarterly amounts may not equal the annual earnings per share amount. |
Subsidiary Guarantees of Debt (
Subsidiary Guarantees of Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiary Guarantees of Debt | |
Schedule of Condensed Consolidating Statement of Earnings | Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 6,540 $ 5,733 $ (799) $ 11,474 Cost and expenses Cost of sales (excluding depreciation and amortization) — (5,591) (4,411) 799 (9,203) Depreciation and amortization (5) (199) (474) — (678) Selling, general and administrative (74) (179) (164) — (417) Business consolidation and other activities (26) (40) (178) — (244) Equity in results of subsidiaries 711 141 — (852) — Intercompany 221 (121) (100) — — 827 (5,989) (5,327) (53) (10,542) Earnings (loss) before interest and taxes 827 551 406 (852) 932 Interest expense (318) 5 (4) — (317) Debt refinancing and other costs (7) — — — (7) Total interest expense (325) 5 (4) — (324) Earnings (loss) before taxes 502 556 402 (852) 608 Tax (provision) benefit 64 (49) (86) — (71) Equity in results of affiliates, net of tax — (10) 9 — (1) Net earnings 566 497 325 (852) 536 Less net earnings attributable to noncontrolling interests — — 30 — 30 Net earnings attributable to Ball Corporation $ 566 $ 497 $ 355 $ (852) $ 566 Comprehensive earnings (loss) attributable to Ball Corporation $ 570 $ 551 $ 402 $ (953) $ 570 Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 6,558 $ 5,874 $ (797) $ 11,635 Cost and expenses Cost of sales (excluding depreciation and amortization) — (5,551) (4,575) 797 (9,329) Depreciation and amortization (6) (202) (494) — (702) Selling, general and administrative (303) 15 (190) — (478) Business consolidation and other activities (108) (29) (54) — (191) Equity in results of subsidiaries 758 82 — (840) — Intercompany 287 (194) (93) — — 628 (5,879) (5,406) (43) (10,700) Earnings (loss) before interest and taxes 628 679 468 (840) 935 Interest expense (311) 12 (2) — (301) Debt refinancing and other costs (1) — — — (1) Total interest expense (312) 12 (2) — (302) Earnings (loss) before taxes 316 691 466 (840) 633 Tax (provision) benefit 138 (203) (120) — (185) Equity in results of affiliates, net of tax — (10) 15 — 5 Net earnings 454 478 361 (840) 453 Less net earnings attributable to noncontrolling interests — — 1 — 1 Net earnings attributable to Ball Corporation $ 454 $ 478 $ 362 $ (840) $ 454 Comprehensive earnings (loss) attributable to Ball Corporation $ 275 $ 467 $ 182 $ (649) $ 275 Condensed Consolidating Statement of Earnings For the Year Ended December 31, 2017 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Net sales $ — $ 5,674 $ 5,532 $ (223) $ 10,983 Cost and expenses Cost of sales (excluding depreciation and amortization) — (4,722) (4,218) 223 (8,717) Depreciation and amortization (8) (209) (512) — (729) Selling, general and administrative (168) (151) (195) — (514) Business consolidation and other activities (120) (56) (45) — (221) Equity in results of subsidiaries 673 141 (40) (774) — Intercompany 301 (150) (151) — — 678 (5,147) (5,161) (551) (10,181) Earnings (loss) before interest and taxes 678 527 371 (774) 802 Interest expense (275) 6 (16) — (285) Debt refinancing and other costs — — (3) — (3) Total interest expense (275) 6 (19) — (288) Earnings (loss) before taxes 403 533 352 (774) 514 Tax (provision) benefit (29) (79) (57) — (165) Equity in results of affiliates, net of tax — 14 17 — 31 Net earnings 374 468 312 (774) 380 Less net earnings attributable to noncontrolling interests — — (6) — (6) Net earnings attributable to Ball Corporation $ 374 $ 468 $ 306 $ (774) $ 374 Comprehensive earnings (loss) attributable to Ball Corporation $ 659 $ 731 $ 578 $ (1,309) $ 659 |
Schedule of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2019 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 877 $ — $ 921 $ — $ 1,798 Receivables, net 31 494 1,106 — 1,631 Intercompany receivables 121 360 1,546 (2,027) — Inventories, net — 550 724 — 1,274 Other current assets 24 35 122 — 181 Total current assets 1,053 1,439 4,419 (2,027) 4,884 Noncurrent assets Property, plant and equipment, net 37 1,474 2,959 — 4,470 Investment in subsidiaries 7,289 2,489 (99) (9,679) — Goodwill — 1,190 3,229 — 4,419 Intangible assets, net 18 376 1,608 — 2,002 Other assets 331 304 950 — 1,585 Total assets $ 8,728 $ 7,272 $ 13,066 $ (11,706) $ 17,360 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 1,449 $ — $ 31 $ — $ 1,480 Accounts payable 16 1,111 2,009 — 3,136 Intercompany payables 2,473 94 338 (2,905) — Accrued employee costs 46 149 90 — 285 Other current liabilities 177 184 315 — 676 Total current liabilities 4,161 1,538 2,783 (2,905) 5,577 Noncurrent liabilities Long-term debt 6,330 — 7 — 6,337 Employee benefit obligations 824 368 294 — 1,486 Intercompany long-term notes (5,385) (2,175) 6,681 879 — Deferred taxes (231) 235 557 — 561 Long-term deferred tax and other liabilities 80 120 180 — 380 Total liabilities 5,779 86 10,502 (2,026) 14,341 Common stock 1,178 2,661 46 (2,707) 1,178 Preferred stock — — 5 (5) — Retained earnings 5,803 5,135 2,857 (7,992) 5,803 Accumulated other comprehensive earnings (loss) (910) (610) (414) 1,024 (910) Treasury stock, at cost (3,122) — — — (3,122) Total Ball Corporation equity 2,949 7,186 2,494 (9,680) 2,949 Noncontrolling interests — — 70 — 70 Total equity 2,949 7,186 2,564 (9,680) 3,019 Total liabilities and equity $ 8,728 $ 7,272 $ 13,066 $ (11,706) $ 17,360 Condensed Consolidating Balance Sheet December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Eliminating Consolidated Assets Current assets Cash and cash equivalents $ 4 $ — $ 717 $ — $ 721 Receivables, net 21 613 1,168 — 1,802 Intercompany receivables 66 495 1,657 (2,218) — Inventories, net — 527 744 — 1,271 Other current assets 32 35 79 — 146 Total current assets 123 1,670 4,365 (2,218) 3,940 Noncurrent assets Property, plant and equipment, net 24 1,378 3,140 — 4,542 Investment in subsidiaries 11,145 3,779 (99) (14,825) — Goodwill — 1,191 3,284 — 4,475 Intangible assets, net 18 409 1,761 — 2,188 Other assets 213 215 981 — 1,409 Total assets $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 Liabilities and Equity Current liabilities Short-term debt and current portion of long-term debt $ 173 $ — $ 46 $ — $ 219 Accounts payable 50 1,178 1,867 — 3,095 Intercompany payables 2,310 49 466 (2,825) — Accrued employee costs 39 144 106 — 289 Other current liabilities 153 119 220 — 492 Total current liabilities 2,725 1,490 2,705 (2,825) 4,095 Noncurrent liabilities Long-term debt 6,504 — 6 — 6,510 Employee benefit obligations 871 286 298 — 1,455 Intercompany long-term notes (1,977) 3 1,368 606 — Deferred taxes (172) 169 648 — 645 Other liabilities 114 45 128 — 287 Total liabilities 8,065 1,993 5,153 (2,219) 12,992 Common stock 1,157 2,523 5,314 (7,837) 1,157 Preferred stock — — 5 (5) — Retained earnings 5,341 4,712 3,316 (8,028) 5,341 Accumulated other comprehensive earnings (loss) (835) (586) (460) 1,046 (835) Treasury stock, at cost (2,205) — — — (2,205) Total Ball Corporation equity 3,458 6,649 8,175 (14,824) 3,458 Noncontrolling interests — — 104 — 104 Total equity 3,458 6,649 8,279 (14,824) 3,562 Total liabilities and equity $ 11,523 $ 8,642 $ 13,432 $ (17,043) $ 16,554 |
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2019 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ (353) $ 752 $ 1,149 $ 1,548 Cash flows from investing activities Capital expenditures (17) (245) (336) (598) Proceeds from dispositions, net of cash sold — — 160 160 Other, net (5) 6 15 16 Cash provided by (used in) investing activities (22) (239) (161) (422) Cash flows from financing activities Long-term borrowings 2,813 — 6 2,819 Repayments of long-term borrowings (1,516) — (8) (1,524) Net change in short-term borrowings (174) — (9) (183) Proceeds from issuances of common stock, net of shares used for taxes 19 — — 19 Acquisitions of treasury stock (964) — — (964) Common stock dividends (182) — — (182) Intercompany 1,283 (513) (770) — Other, net (31) — — (31) Cash provided by (used in) financing activities 1,248 (513) (781) (46) Effect of exchange rate changes on cash — — (2) (2) Change in cash, cash equivalents and restricted cash 873 — 205 1,078 Cash, cash equivalents and restricted cash – beginning of period 4 — 724 728 Cash, cash equivalents and restricted cash – end of period $ 877 $ — $ 929 $ 1,806 Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2018 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ 6 $ 237 $ 1,323 $ 1,566 Cash flows from investing activities Capital expenditures (10) (431) (375) (816) Proceeds from dispositions, net of cash sold (65) 604 — 539 Other, net (4) 47 28 71 Cash provided by (used in) investing activities (79) 220 (347) (206) Cash flows from financing activities Long-term borrowings 1,475 — — 1,475 Repayments of long-term borrowings (1,525) — (8) (1,533) Net change in short-term borrowings (73) — (47) (120) Proceeds from issuances of common stock, net of shares used for taxes 28 — — 28 Acquisitions of treasury stock (739) — — (739) Common stock dividends (137) — — (137) Intercompany 1,054 (456) (598) — Other, net (11) (1) (2) (14) Cash provided by (used in) financing activities 72 (457) (655) (1,040) Effect of exchange rate changes on cash — — (51) (51) Change in cash, cash equivalents and restricted cash (1) — 270 269 Cash, cash equivalents and restricted cash – beginning of period 5 — 454 459 Cash, cash equivalents and restricted cash – end of period $ 4 $ — $ 724 $ 728 Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2017 ($ in millions) Ball Guarantor Non-Guarantor Consolidated Cash provided by (used in) operating activities $ 234 $ 742 $ 502 $ 1,478 Cash flows from investing activities Capital expenditures (6) (301) (249) (556) Proceeds from dispositions, net of cash sold 17 31 (50) (2) Other, net (2) 31 (16) 13 Cash provided by (used in) investing activities 9 (239) (315) (545) Cash flows from financing activities Long-term borrowings 765 — — 765 Repayments of long-term borrowings (741) — (1,069) (1,810) Net change in short-term borrowings 174 1 9 184 Proceeds from issuances of common stock, net of shares used for taxes 27 — — 27 Acquisitions of treasury stock (103) — — (103) Common stock dividends (129) — — (129) Intercompany (226) (491) 717 — Other, net — (3) (4) (7) Cash provided by (used in) financing activities (233) (493) (347) (1,073) Effect of exchange rate changes on cash (6) 1 (3) (8) Change in cash, cash equivalents and restricted cash 4 11 (163) (148) Cash, cash equivalents and restricted cash – beginning of period 1 (11) 617 607 Cash, cash equivalents and restricted cash – end of period $ 5 $ — $ 454 $ 459 |
Critical and Significant Acco_3
Critical and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% |
Minimum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life of finite-lived intangible assets | 3 years |
Maximum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life of finite-lived intangible assets | 18 years |
Buildings and improvements | Minimum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life | 5 years |
Buildings and improvements | Maximum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life | 2 years |
Machinery and equipment | Maximum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life | 20 years |
Capitalized Software | Minimum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life | 3 years |
Capitalized Software | Maximum | |
Depreciation, Amortization and Accretion, Net [Abstract] | |
Estimated useful life | 7 years |
Critical and Significant Acco_4
Critical and Significant Accounting Policies - Rev Recognition (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segmentcontract | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenue, Performance Obligation [Abstract] | |||
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true | ||
Revenue Recognition in the Aerospace and Technologies Segment | |||
Revenue, Practical Expedient, Financing Component [true false] | true | ||
Number of reportable segments | segment | 4 | ||
Research and Development Costs | |||
Research and development expenses | $ | $ 44 | $ 32 | $ 27 |
Aerospace | |||
Revenue Recognition in the Aerospace and Technologies Segment | |||
Number of types of long-term sales contracts utilized | contract | 2 | ||
Maximum | |||
Revenue, Performance Obligation [Abstract] | |||
Payment term | 1 year | ||
Maximum | Aerospace | |||
Revenue, Performance Obligation [Abstract] | |||
Payment term | 1 year |
Accounting Pronouncements - Lea
Accounting Pronouncements - Leases (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||||
Other current assets | $ 139 | $ 181 | $ 146 | |
Operating lease right-of-use assets | 244 | $ 239 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other current assets | Other current assets | ||
Other assets | 1,384 | |||
Liabilities [Abstract] | ||||
Other current liabilities | 489 | $ 676 | 492 | |
Current operating lease liabilities | $ 53 | $ 58 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | ||
Other liabilities | $ 273 | $ 380 | 287 | |
Noncurrent operating lease liabilities | $ 182 | $ 181 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | ||
Effect of Tax Cuts and Jobs Act [Abstract] | ||||
Reclassification of stranded tax effects | $ 79 | |||
As Previously reported | ||||
Assets [Abstract] | ||||
Other current assets | 140 | |||
Other assets | 1,409 | |||
Liabilities [Abstract] | ||||
Other current liabilities | 492 | |||
Other liabilities | $ 287 | |||
ASU 2016-02 | ||||
Lessee Disclosure [Abstract] | ||||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Fixed List] | Modified Retrospective | |||
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Not Restated [true false] | true | |||
Practical expedient package adopted | true | |||
Land easement practical expedient | true | |||
Impact on opening retained earnings balance | $ 0 | |||
ASU 2016-02 | Adjustments Due to Adoption | ||||
Assets [Abstract] | ||||
Other current assets | (1) | |||
Operating lease right-of-use assets | 244 | |||
Other assets | (25) | |||
Liabilities [Abstract] | ||||
Other current liabilities | (3) | |||
Current operating lease liabilities | 53 | |||
Other liabilities | (14) | |||
Noncurrent operating lease liabilities | $ 182 |
Business Segment Information -
Business Segment Information - Major customers (Details) - segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major Customers | |||
Number of reportable segments | 4 | ||
Net sales. | Customer concentration | Anheuser-Busch InBev and affiliates | |||
Major Customers | |||
Percentage of consolidated net sales | 12.00% | 13.00% | 14.00% |
Net sales. | Customer concentration | Coca-Cola Bottlers' Sales & Services Company LLC and affiliates | |||
Major Customers | |||
Percentage of consolidated net sales | 9.00% | 12.00% | 11.00% |
Net sales. | Customer concentration | U.S. Government | |||
Major Customers | |||
Percentage of consolidated net sales | 13.00% | 10.00% | 9.00% |
Business Segment Information _2
Business Segment Information - Summary by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | $ 2,719 | $ 2,953 | $ 3,017 | $ 2,785 | $ 2,803 | $ 2,946 | $ 3,101 | $ 2,785 | $ 11,474 | $ 11,635 | $ 10,983 |
Net long-lived assets | 6,055 | 5,951 | 6,055 | 5,951 | |||||||
U.S. | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | 5,747 | 5,783 | 5,496 | ||||||||
Net long-lived assets | 2,024 | 1,708 | 2,024 | 1,708 | |||||||
Brazil | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | 1,351 | 1,380 | 1,427 | ||||||||
Net long-lived assets | 750 | 865 | 750 | 865 | |||||||
U.K. | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net long-lived assets | 626 | 701 | 626 | 701 | |||||||
Other | |||||||||||
Summary of net sales and net long-lived assets by geographic area | |||||||||||
Net sales | 4,376 | 4,472 | $ 4,060 | ||||||||
Net long-lived assets | $ 2,655 | $ 2,677 | $ 2,655 | $ 2,677 |
Business Segment Information _3
Business Segment Information - Summary of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||||||||||
Net sales | $ 2,719 | $ 2,953 | $ 3,017 | $ 2,785 | $ 2,803 | $ 2,946 | $ 3,101 | $ 2,785 | $ 11,474 | $ 11,635 | $ 10,983 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Reportable segment comparable operating earnings | 1,291 | 1,259 | 1,197 | ||||||||
Reconciling items | |||||||||||
Other | 40 | 31 | 23 | ||||||||
Business consolidation and other activities | (244) | (191) | (221) | ||||||||
Amortization of acquired Rexam intangibles | (187) | (204) | (220) | ||||||||
Catch-up depreciation and amortization for 2016 from finalization of Rexam valuation | (35) | ||||||||||
Earnings before interest and taxes | 932 | 935 | 802 | ||||||||
Interest expense | (317) | (301) | (285) | ||||||||
Debt refinancing and other costs | (7) | (1) | (3) | ||||||||
Total interest expense | (324) | (302) | (288) | ||||||||
Earnings before taxes | $ 123 | $ 119 | $ 226 | $ 140 | $ 123 | $ 192 | $ 166 | $ 152 | 608 | 633 | 514 |
Undistributed corporate expenses | 54 | 85 | 128 | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation and amortization | 678 | 702 | 729 | ||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 598 | 816 | 556 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||||||||||
Net sales | 10,558 | 10,142 | 9,221 | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation and amortization | 600 | 586 | 608 | ||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 529 | 752 | 470 | ||||||||
Operating Segments | Beverage packaging, North And Central America | |||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||||||||||
Net sales | 4,758 | 4,626 | 4,178 | ||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Reportable segment comparable operating earnings | 555 | 551 | 533 | ||||||||
Reconciling items | |||||||||||
Business consolidation and other activities | (14) | (6) | (47) | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation and amortization | 190 | 184 | 179 | ||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 139 | 322 | 283 | ||||||||
Operating Segments | Beverage packaging, South America | |||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||||||||||
Net sales | 1,670 | 1,701 | 1,692 | ||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Reportable segment comparable operating earnings | 288 | 313 | 333 | ||||||||
Reconciling items | |||||||||||
Business consolidation and other activities | 15 | 11 | (5) | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation and amortization | 136 | 131 | 144 | ||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 150 | 106 | 36 | ||||||||
Operating Segments | Beverage packaging, Europe | |||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||||||||||
Net sales | 2,651 | 2,619 | 2,360 | ||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Reportable segment comparable operating earnings | 308 | 282 | 233 | ||||||||
Reconciling items | |||||||||||
Business consolidation and other activities | (39) | (49) | (89) | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation and amortization | 231 | 238 | 254 | ||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 144 | 194 | 81 | ||||||||
Operating Segments | Aerospace | |||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||||||||||
Net sales | 1,479 | 1,196 | 991 | ||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Reportable segment comparable operating earnings | 140 | 113 | 98 | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation and amortization | 43 | 33 | 31 | ||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 96 | 130 | 70 | ||||||||
Other | |||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |||||||||||
Net sales | 916 | 1,493 | 1,762 | ||||||||
Reconciling items | |||||||||||
Business consolidation and other activities | (206) | (147) | (80) | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation and amortization | 78 | 116 | 121 | ||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 69 | 64 | 86 | ||||||||
Rexam | |||||||||||
Reconciling items | |||||||||||
Amortization of acquired Rexam intangibles | $ (155) | $ (164) | $ (162) |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Oct. 31, 2019 | Sep. 30, 2019 | Jul. 31, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Disposition | ||||||
Charge in earnings for translation losses | $ (45) | |||||
Loss on disposal location in consolidated statement of earnings | bll:bllRestructuringAndOtherActivities | |||||
Ball Metalpack | ||||||
Disposition | ||||||
Percentage of ownership in a joint venture | 49.00% | 49.00% | ||||
Ball Metalpack | Forecast | ||||||
Disposition | ||||||
Fair value of investment in joint venture | $ 30 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Steel Aerosol Packaging Business In Argentina [Member] | ||||||
Disposition | ||||||
Loss on sale of disposal group | $ 52 | |||||
Charge in earnings for translation losses | $ 45 | |||||
Loss on disposal location in consolidated statement of earnings | bll:RestructuringAndOtherActivities | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Beverage Packaging China | ||||||
Disposition | ||||||
Loss on sale of disposal group | $ 45 | |||||
Loss on disposal location in consolidated statement of earnings | bll:RestructuringAndOtherActivities | |||||
Consideration for the sale of business | $ 213 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | US steel food and steel aerosol packaging | ||||||
Disposition | ||||||
Loss on sale of disposal group | $ 41 | |||||
Loss on disposal location in consolidated statement of earnings | bll:RestructuringAndOtherActivities | |||||
Consideration for the sale of business | $ 600 | $ 600 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | US steel food and steel aerosol packaging | Forecast | ||||||
Disposition | ||||||
Loss on sale of disposal group | $ 15 |
Revenue from Contracts With C_3
Revenue from Contracts With Customers - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 2,719 | $ 2,953 | $ 3,017 | $ 2,785 | $ 2,803 | $ 2,946 | $ 3,101 | $ 2,785 | $ 11,474 | $ 11,635 | $ 10,983 |
Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | 2,220 | 2,634 | |||||||||
Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net sales | $ 9,254 | $ 9,001 |
Revenue from Contracts With C_4
Revenue from Contracts With Customers - Contract balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Contract Liabilities (Current) | $ 87 | $ 45 | $ 45 |
Contract Liabilities (Noncurrent) | 9 | 8 | |
Increase (decrease) current contract liabilities | 42 | ||
Increase (decrease) noncurrent contract liabilities | 1 | 8 | |
Total increase (decrease) in contract liabilities | 43 | ||
Cash received on contract liabilities | 254 | ||
Revenue recognized included in contract liabilities current | 211 | ||
Revenue recognized from opening balance of contract liabilities | 45 | ||
Revenue recognized from obligations satisfied or partially satisfied in prior periods | $ 15 | $ 18 |
Revenue from Contracts With C_5
Revenue from Contracts With Customers - Performance obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)contract | |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment term | 1 year |
Aerospace | |
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 | $ 2,476 |
Number of types of long-term sales contracts utilized | contract | 2 |
Aerospace | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
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 | $ 1,409 |
Aerospace | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period in which remaining performance obligations expect to be satisfied and revenue recognized | 0 months |
Sales expected to be recognized on multi-year contracts in place as of the end of the period | $ 1,067 |
Aerospace | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment term | 1 year |
Business Consolidation and Ot_3
Business Consolidation and Other Activities (Details) $ in Millions | Jul. 31, 2018USD ($) | Oct. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
Business consolidation and other activities | |||||||||
Business consolidation and other activities | $ (244) | $ (191) | $ (221) | ||||||
Gain related to indirect tax contingencies | $ 57 | ||||||||
Charge in earnings for translation losses | $ (45) | ||||||||
Beverage Packaging Business In Saudi Arabia [Member] | |||||||||
Business consolidation and other activities | |||||||||
Ownership, as a percent | 51.00% | ||||||||
US steel food and steel aerosol packaging | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of disposal group | $ (41) | ||||||||
Steel Aerosol Packaging Business In Argentina [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of disposal group | $ (52) | ||||||||
Charge in earnings for translation losses | $ 45 | ||||||||
Beverage packaging, North And Central America | |||||||||
Business consolidation and other activities | |||||||||
Number of locations closed | item | 3 | ||||||||
Beverage packaging, North And Central America | Chatsworth, California facility | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of disposal group | $ 18 | ||||||||
Operating Segments | Beverage packaging, North And Central America | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | $ (14) | $ (6) | (47) | ||||||
Individually insignificant activities | 6 | 10 | 5 | ||||||
Reversal of previously recorded expenses related to facilities closure | 8 | ||||||||
Operating Segments | Beverage packaging, North And Central America | Reidsville, North Carolina facility | Facility Closing | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 2 | ||||||||
Operating Segments | Beverage packaging, North And Central America | Reidsville, North Carolina facility | Employee Severance And Benefits Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 9 | ||||||||
Operating Segments | Beverage packaging, North And Central America | Birmingham, Alabama, Chatsworth, California And Longview, Texas facilities | Employee Severance And Benefits | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 29 | ||||||||
Operating Segments | Beverage packaging, North And Central America | Birmingham, Alabama, Chatsworth, California And Longview, Texas facilities | Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 4 | ||||||||
Operating Segments | Beverage packaging, North And Central America | Birmingham, Alabama, Chatsworth, California And Longview, Texas facilities | Employee Severance And Benefits Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 12 | ||||||||
Operating Segments | Beverage packaging, South America | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | 15 | 11 | (5) | ||||||
Charges related to facilities closure | 29 | ||||||||
Individually insignificant activities | 13 | 3 | 2 | ||||||
Gain related to indirect tax contingencies | 57 | 18 | |||||||
Operating Segments | Beverage packaging, South America | Employee Severance And Benefits Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 4 | ||||||||
Operating Segments | Beverage packaging, South America | Rexam | |||||||||
Business consolidation and other activities | |||||||||
Professional services and other costs | 3 | ||||||||
Operating Segments | Beverage packaging, Europe | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | (39) | (49) | (89) | ||||||
Charges related to facilities closure | 26 | ||||||||
Individually insignificant activities | 13 | 5 | 4 | ||||||
Operating Segments | Beverage packaging, Europe | Rexam | |||||||||
Business consolidation and other activities | |||||||||
Professional services and other costs | 4 | ||||||||
Operating Segments | Beverage packaging, Europe | Recklinghausen, Germany facility | Employee Severance And Benefits | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 59 | ||||||||
Operating Segments | Beverage packaging, Europe | Recklinghausen, Germany facility | Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 22 | ||||||||
Operating Segments | Beverage packaging, Europe | Recklinghausen, Germany facility | Employee Benefits Severance Facility Shutdown Costs And Other Costs | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | 18 | ||||||||
Operating Segments | Beverage packaging, Europe | San Martino, Italy facility | Employee Severance And Benefits Facility Shutdown Costs Asset Impairment Accelerated Depreciation And Other Costs | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | $ 26 | ||||||||
Other | |||||||||
Business consolidation and other activities | |||||||||
Business consolidation and other activities | (206) | (147) | (80) | ||||||
Individually insignificant activities | 19 | 26 | 28 | ||||||
Settlement loss | 8 | 36 | 44 | ||||||
Expense of indemnifications of uncertain tax positions | 2 | ||||||||
Other | Employee Severance and Benefits, Accelerated Depreciation and Inventory Impairment | |||||||||
Business consolidation and other activities | |||||||||
Charges related to manufacturing cost rationalization | 4 | ||||||||
Other | Beverage packaging China | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of disposal group | 45 | ||||||||
Professional services and other costs | 18 | ||||||||
Other | US steel food and steel aerosol packaging | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of disposal group | 41 | ||||||||
Professional services and other costs | 15 | ||||||||
Other | Steel Aerosol Packaging Business In Argentina [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of disposal group | 52 | ||||||||
Charge in earnings for translation losses | 45 | ||||||||
Other | Divestment Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Expense of indemnifications of uncertain tax positions | 34 | ||||||||
Adjustment to gain on sale of Divestment Business | 55 | ||||||||
Other | Rexam | |||||||||
Business consolidation and other activities | |||||||||
Professional services and other costs | 12 | ||||||||
Compensation arrangement expense | $ 23 | $ 25 | |||||||
Other | Weirton, West Virginia facility | Facility Shutdown Costs And Accelerated Depreciation | |||||||||
Business consolidation and other activities | |||||||||
Charges related to facilities closure | $ 7 | ||||||||
Other | Hubbard, Ohio facility | Food and aerosol packaging paint and general line can plant | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Business consolidation and other activities | |||||||||
Loss on sale of disposal group | $ 15 | ||||||||
Other | SAUDI ARABIA | |||||||||
Business consolidation and other activities | |||||||||
Impairment of assets held for sale | $ 64 |
Supplemental Cash Flow Statem_3
Supplemental Cash Flow Statement Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 1,798 | $ 721 | $ 448 | |
Current restricted cash | $ 8 | $ 7 | 10 | |
Location of current restricted cash | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | ||
Noncurrent restricted cash | 1 | |||
Location of noncurrent restricted cash | us-gaap:OtherAssetsNoncurrent | |||
Total cash, cash equivalents and restricted cash | $ 1,806 | $ 728 | $ 459 | $ 607 |
Other Non-cash items | ||||
PP&E acquired but not yet paid | $ 224 | 127 | ||
Rexam | ||||
Other Non-cash items | ||||
Payment of indemnification guarantees | $ 45 |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables, Net | ||
Trade accounts receivable | $ 647 | $ 812 |
Unbilled receivables | 556 | 478 |
Less allowances for doubtful accounts | (17) | (10) |
Net trade accounts receivable | 1,186 | 1,280 |
Other receivables | 445 | 522 |
Receivables, net | 1,631 | 1,802 |
Net accounts receivable under long-term contracts, due primarily from agencies of the U.S. government and their prime contractors | 247 | 240 |
Recognized sales value of performance not yet billable | $ 164 | 164 |
Average length of long-term contracts | 2 years 9 months | |
Average remaining length of contracts | 1 year | |
Net receivables expected to be collected within one year | $ 247 | |
Maximum available sale of the accounts receivables under factoring program | 1,400 | 1,200 |
Amount of accounts receivable available for sale under the factoring program | $ 230 | $ 178 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories, Net | ||
Raw materials and supplies | $ 808 | $ 727 |
Work-in-process and finished goods | 548 | 614 |
Less inventory reserves | (82) | (70) |
Inventories, net | $ 1,274 | $ 1,271 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 7,533 | $ 7,277 | |
Accumulated depreciation | (3,063) | (2,735) | |
Net property, plant and equipment | 4,470 | 4,542 | |
Depreciation expense | 491 | 498 | $ 509 |
Beverage Asia Pacific/AMEA | |||
Property, plant and equipment | |||
Impairment of property, plant and equipment and intangible assets | 64 | ||
Land | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 153 | 159 | |
Buildings | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 1,433 | 1,359 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 5,513 | 5,250 | |
Construction-in-progress | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 434 | $ 509 | |
Beverage Packaging Business In Saudi Arabia [Member] | |||
Property, plant and equipment | |||
Ownership, as a percent | 51.00% |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2020 | Dec. 31, 2019 | |
Goodwill | |||||
Balance at the beginning of the period | $ 4,475 | $ 4,933 | |||
Business disposition | (52) | (354) | |||
Opening balance sheet adjustments | (1) | 4 | |||
Effects of currency exchange | (3) | (108) | |||
Balance at the end of the period | 4,419 | 4,475 | |||
Goodwill | 4,475 | 4,933 | $ 4,419 | ||
Beverage Asia Pacific/AMEA | |||||
Goodwill | |||||
Balance at the end of the period | 27 | ||||
Impairment of property, plant and equipment and intangible assets | 64 | ||||
Percentage of fair value exceeding carrying value | 35.00% | ||||
Impairment of goodwill | 64 | ||||
Goodwill | 27 | $ 27 | |||
Beverage packaging, North And Central America | |||||
Goodwill | |||||
Balance at the beginning of the period | 1,275 | 1,275 | |||
Balance at the end of the period | 1,275 | 1,275 | |||
Goodwill | 1,275 | 1,275 | 1,275 | ||
Beverage packaging, South America | |||||
Goodwill | |||||
Balance at the beginning of the period | 1,299 | 1,299 | |||
Opening balance sheet adjustments | (1) | ||||
Balance at the end of the period | 1,298 | 1,299 | |||
Goodwill | 1,298 | 1,299 | 1,298 | ||
Beverage packaging, Europe | |||||
Goodwill | |||||
Balance at the beginning of the period | 1,435 | 1,531 | |||
Opening balance sheet adjustments | 4 | ||||
Effects of currency exchange | (2) | (100) | |||
Balance at the end of the period | 1,433 | 1,435 | |||
Goodwill | 1,433 | 1,435 | 1,433 | ||
Aerospace | |||||
Goodwill | |||||
Balance at the beginning of the period | 40 | 40 | |||
Balance at the end of the period | 40 | 40 | |||
Goodwill | 40 | 40 | 40 | ||
Ball Beverage Packaging Amea Limited [Member] | |||||
Goodwill | |||||
Balance at the end of the period | 102 | ||||
Goodwill | 102 | 102 | |||
Beverage Packaging Asia [Member] | |||||
Goodwill | |||||
Balance at the end of the period | 27 | ||||
Goodwill | 27 | 27 | |||
Beverage Packaging, Other Segment [Member] | Subsequent Event. | |||||
Goodwill | |||||
Goodwill | $ 62 | ||||
Other | |||||
Goodwill | |||||
Balance at the beginning of the period | 426 | 788 | |||
Business disposition | (52) | (354) | |||
Effects of currency exchange | (1) | (8) | |||
Balance at the end of the period | 373 | 426 | |||
Goodwill | 373 | $ 426 | $ 373 | ||
US steel food and steel aerosol packaging | |||||
Goodwill | |||||
Business disposition | $ (354) | ||||
Beverage packaging China | |||||
Goodwill | |||||
Business disposition | (51) | ||||
Steel Aerosol Packaging Business In Argentina [Member] | |||||
Goodwill | |||||
Business disposition | $ (1) |
Intangibles Assets, Net (Detail
Intangibles Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total annual intangible asset amortization expense | |||
Acquired intangible assets, net of accumulated amortization | $ 24 | $ 33 | |
Accumulated amortization | 116 | 112 | |
Capitalized software (net of accumulated amortization) | 69 | 82 | |
Accumulated amortization - capitalized software | 170 | 148 | |
Total intangible assets, net | 2,002 | 2,188 | |
Amortization of Intangible Assets | 187 | 204 | $ 220 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2020 | 185 | ||
2021 | 173 | ||
2022 | 167 | ||
2023 | 160 | ||
2024 | 156 | ||
Thereafter | 1,200 | ||
Rexam | |||
Total annual intangible asset amortization expense | |||
Acquired intangible assets, net of accumulated amortization | 1,909 | 2,073 | |
Accumulated amortization | 567 | 399 | |
Amortization of Intangible Assets | $ 155 | $ 164 | $ 162 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other assets | |||
Long-term deferred tax assets | $ 241 | $ 237 | |
Long-term pension assets | 437 | 559 | |
Investments in affiliates | 291 | 302 | |
Right-of-use operating lease assets | 239 | $ 244 | |
Other | 377 | 311 | |
Other Assets | $ 1,585 | $ 1,409 | |
Entity In South Korea | |||
Other assets | |||
Ownership in affiliate, as a percent | 40.00% | ||
Entity In Guatemala | |||
Other assets | |||
Ownership in affiliate, as a percent | 50.00% | ||
Entity In Panama | |||
Other assets | |||
Ownership in affiliate, as a percent | 50.00% | ||
Entity In Vietnam | |||
Other assets | |||
Ownership in affiliate, as a percent | 50.00% | ||
Entity In U.S. | |||
Other assets | |||
Ownership in affiliate, as a percent | 50.00% | 49.00% |
Leases - Components of lease ex
Leases - Components of lease expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Components of lease expense | |
Operating lease expense | $ (67) |
Variable lease expense | (10) |
Sublease income | 3 |
Net lease expense | $ (74) |
Leases - Supplemental informati
Leases - Supplemental information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2019 | Jan. 01, 2019 | |
Cash paid for amounts included in the measurements of lease liabilities: | |||
Operating cash flows from operating leases | $ (62) | ||
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | $ 35 | ||
Supplemental balance sheet information | |||
Balance sheet location for assets | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | |
Operating lease right-of-use assets | $ 239 | $ 244 | |
Balance sheet location for current liabilities | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |
Current operating lease liabilities | $ 58 | $ 53 | |
Balance sheet location for non-current liabilities | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Noncurrent operating lease liabilities | $ 181 | $ 182 |
Leases - Weighted average infor
Leases - Weighted average information (Details) | Dec. 31, 2019 |
Weighted average information | |
Weighted average remaining lease term: Operating leases | 10 years |
Weighted average discount rate: Operating leases | 4.30% |
Leases - Lease liabilities matu
Leases - Lease liabilities maturities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Maturities of lease liabilities | |
2020 | $ 66 |
2021 | 52 |
2022 | 43 |
2023 | 32 |
2024 | 21 |
Thereafter | 88 |
Future value of lease liabilities | 302 |
Less: Imputed interest | (63) |
Present value of lease liabilities | $ 239 |
Leases not yet commence, term | 10 years |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent |
Leases - Noncancelable rental p
Leases - Noncancelable rental payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future rental payments required under total noncancellable operating leases before Topic 842 | |
2019 | $ 66 |
2020 | 52 |
2021 | 41 |
2022 | 34 |
2023 | 25 |
Thereafter | 87 |
Total future lease payments | $ 305 |
Debt and Interest Costs - Long
Debt and Interest Costs - Long term debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2019 | |
Long-term debt | |||
Long-term Debt, Gross | $ 7,800 | $ 6,500 | |
Other (including debt issuance costs) | (54) | (41) | |
Long-term debt, Total | 7,791 | 6,518 | |
Less: Current portion of long-term debt | (1,454) | (8) | |
Long-term debt excluding current maturities | 6,337 | 6,510 | |
Senior Notes 5.25 percent, due July 2025 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 1,000 | $ 1,000 | |
Interest rate (as a percent) | 5.25% | 5.25% | |
Senior Notes 4.375 percent, due December 2020 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 1,000 | $ 1,000 | |
Interest rate (as a percent) | 4.375% | 4.375% | |
Senior Notes 4.00 percent , due November 2023 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 1,000 | $ 1,000 | |
Interest rate (as a percent) | 4.00% | 4.00% | |
Senior Notes 4.375 percent, euro denominated, due December 2023 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 785 | $ 803 | |
Interest rate (as a percent) | 4.375% | 4.375% | |
Senior Notes 5.00 percent, due March 2022 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 750 | $ 750 | |
Interest rate (as a percent) | 5.00% | 5.00% | |
Senior Notes 4.875 Percent, due March 2026 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 750 | $ 750 | |
Interest rate (as a percent) | 4.875% | 4.875% | |
Senior Notes 3.50 Percent, euro denominated, due December 2020 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 449 | $ 459 | |
Interest rate (as a percent) | 3.50% | 3.50% | |
Senior Notes 1.50 Percent, euro denominated, due March 2027 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 617 | ||
Interest rate (as a percent) | 1.50% | 1.50% | |
Senior Notes 0.875 Percent, euro denominated, due March 2024 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 841 | ||
Interest rate (as a percent) | 0.875% | 0.875% | |
Term A loan, due June 2024 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 653 | ||
Variable interest rate (as a percent) | 3.94% | ||
Term A Loan, euro denominated, due June 2021 | |||
Long-term debt | |||
Long-term Debt, Gross | $ 797 | ||
Variable interest rate (as a percent) | 4.02% |
Debt and Interest Costs - Activ
Debt and Interest Costs - Activity (Details) € in Millions, $ in Millions | Jan. 31, 2020USD ($) | Jan. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Nov. 30, 2019EUR (€) | Dec. 31, 2018USD ($) |
Revolving credit facility | |||||
Maximum borrowing capacity of revolving credit facility | $ 1,750 | ||||
Senior Notes 0.875 Percent, euro denominated, due March 2024 | |||||
Long-term debt | |||||
Face amount of debt | € | € 750 | ||||
Interest rate (as a percent) | 0.875% | 0.875% | |||
Senior Notes 1.50 Percent, euro denominated, due March 2027 | |||||
Long-term debt | |||||
Face amount of debt | € | € 550 | ||||
Interest rate (as a percent) | 1.50% | 1.50% | |||
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 | $ 26 | $ 211 | |||
Weighted average interest rate of the outstanding short-term facilities (as a percent) | 5.99% | 3.55% | |||
Senior Notes 3.50 Percent, euro denominated, due December 2020 | |||||
Long-term debt | |||||
Interest rate (as a percent) | 3.50% | 3.50% | |||
Senior Notes 3.50 Percent, euro denominated, due December 2020 | Subsequent Event. | |||||
Long-term debt | |||||
Face amount of debt | € | € 400 | ||||
Interest rate (as a percent) | 3.50% | 3.50% | |||
Senior Notes 4.375 percent, due December 2020 | |||||
Long-term debt | |||||
Interest rate (as a percent) | 4.375% | 4.375% | |||
Senior Notes 4.375 percent, due December 2020 | Subsequent Event. | |||||
Long-term debt | |||||
Face amount of debt | $ 1,000 | ||||
Interest rate (as a percent) | 4.375% | 4.375% |
Debt and Interest Costs - FV, M
Debt and Interest Costs - FV, Maturities, etc. (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long term debt value | |||
Carrying value | $ 7,800 | $ 6,500 | |
Unamortized debt issuance costs | 65 | ||
Long term debt maturities | |||
2020 | 1,400 | ||
2021 | 1 | ||
2022 | 751 | ||
2023 | 1,800 | ||
2024 | 1,400 | ||
Thereafter | 2,400 | ||
Letters of credit, outstanding amount | 37 | 28 | |
Total interest paid and accrued | |||
Interest paid during period | $ 331 | 304 | $ 287 |
Ownership interest in guarantor subsidiaries (as a percent) | 100.00% | ||
Leverage ratio, maximum | 4.5 | ||
Level 2 | |||
Long term debt value | |||
Fair value of the long-term debt | $ 8,300 | $ 6,600 |
Taxes on Income - Provision (De
Taxes on Income - Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings before income taxes: | |||||||||||
U.S | $ 224 | $ 193 | $ 147 | ||||||||
Foreign | 384 | 440 | 367 | ||||||||
Earnings before taxes | $ 123 | $ 119 | $ 226 | $ 140 | $ 123 | $ 192 | $ 166 | $ 152 | 608 | 633 | 514 |
Current | |||||||||||
U.S. | (1) | 30 | 6 | ||||||||
State and local | 7 | 5 | |||||||||
Foreign | 110 | 115 | 77 | ||||||||
Total current | 116 | 150 | 83 | ||||||||
Deferred | |||||||||||
U.S. | (26) | 21 | 92 | ||||||||
State and local | (1) | 9 | 7 | ||||||||
Foreign | (18) | 5 | (17) | ||||||||
Deferred Income Tax Expense (Benefit), Total | (45) | 35 | 82 | ||||||||
Income Tax Expense (Benefit), Total | $ 71 | $ 185 | $ 165 |
Taxes on Income - Rate reconcil
Taxes on Income - Rate reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax provision reconciliation | |||
Statutory U.S. federal income tax | $ 128 | $ 133 | $ 180 |
Increase (decrease) due to: | |||
Foreign tax rate differences including tax holidays | (11) | (11) | (52) |
Foreign tax law and rate changes | (28) | ||
U. S. tax reform | (45) | 83 | |
Foreign exchange loss on revaluation of Brazilian deferred tax balances | 4 | 26 | |
Global intangible low-taxed income (GILTI) | 12 | 15 | |
Permanent difference on business dispositions | (3) | 56 | 18 |
U.S. state and local taxes, net | 4 | 13 | 3 |
U.S. taxes on foreign earnings, net of tax deductions and credits | (6) | (9) | (6) |
U.S. manufacturing deduction | (8) | ||
U.S. research and development tax credits | (10) | (7) | (9) |
Uncertain tax positions, including interest | (19) | (1) | (3) |
Change in valuation allowances | 24 | 31 | 15 |
Benefit from foreign equity compensation | (43) | (14) | (16) |
Other, net | (9) | (2) | (12) |
Income Tax Expense (Benefit), Total | $ 71 | $ 185 | $ 165 |
Effective tax rate expressed as a percentage of pre-tax earnings | 11.70% | 29.20% | 32.10% |
Taxes on Income - Tax reform es
Taxes on Income - Tax reform estimates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effect of Tax Cuts and Jobs Act [Abstract] | |||
Effective income tax rate | 21.00% | 35.00% | |
Provisional increase of tax expense, change in tax rate effect on tax asset position | $ 52 | ||
Provisional increase of transition tax expense | $ 31 | ||
Final impact of measurement period adjustments | $ (45) | ||
Amount of tax expense related to GILTI | $ 12 |
Taxes on Income - Foreign subsi
Taxes on Income - Foreign subsidiaries (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign income taxes | |||
Retained earnings | $ 5,803 | $ 5,341 | |
Amount of non-U.S. earnings that may be subject to incremental foreign taxes and U.S. state income tax upon distribution | 655,000 | ||
Net income tax payments | $ 128 | 143 | $ 107 |
Ball's Serbian subsidiary | |||
Foreign income taxes | |||
Tax relief as a percentage of the additional local investment | 80.00% | ||
Period Of Tax Relief | 10 years | ||
Tax relief remaining balance | $ 6 | ||
Brazilian Subsidiary | |||
Foreign income taxes | |||
Income tax reduction due to tax holidays | 62 | 63 | 47 |
Aggregate tax relief over the income tax holiday period | $ 62 | $ 63 | $ 47 |
Tax holiday, benefit per share | $ 0.19 | $ 0.18 | $ 0.13 |
Polish Subsidiary | |||
Foreign income taxes | |||
Period Of Tax Relief | 10 years | ||
Tax relief remaining balance | $ 28 | ||
Income tax reduction due to tax holidays | 34 | ||
Aggregate tax relief over the income tax holiday period | 34 | ||
Non US Subsidiaries | |||
Foreign income taxes | |||
Retained earnings | $ 2,100 |
Taxes on Income - Components of
Taxes on Income - Components of Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Deferred compensation | $ 90 | $ 73 |
Accrued employee benefits | 93 | 100 |
Accrued pensions | 190 | 179 |
Inventory and other reserves | 42 | 41 |
Net operating losses, foreign tax credits and other tax attributes | 408 | 390 |
Unrealized losses on currency exchange and derivative transactions | 6 | 26 |
Goodwill and other intangible assets | 54 | 64 |
Other | 168 | 110 |
Total deferred tax assets | 1,051 | 983 |
Valuation allowance | (244) | (224) |
Net deferred tax assets | 807 | 759 |
Deferred tax liabilities: | ||
Property, Plant and Equipment | (330) | (336) |
Goodwill and other intangible assets | (586) | (621) |
Accrued pensions | (74) | (90) |
Other | (137) | (120) |
Total deferred tax liabilities | (1,127) | (1,167) |
Net deferred tax asset (liability) | (320) | (408) |
Net deferred tax asset (liability) | (320) | (408) |
Other long term assets | ||
Deferred tax liabilities: | ||
Net deferred tax asset (liability) | 241 | 237 |
Deferred taxes | ||
Deferred tax liabilities: | ||
Net deferred tax asset (liability) | (561) | (645) |
Net deferred tax asset (liability) | $ (561) | $ (645) |
Taxes on Income - Carryforwards
Taxes on Income - Carryforwards and valuation allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes on Income | |||
Increase (decrease) in valuation allowances | $ 20 | $ 59 | $ (18) |
Amount of valuation allowance change that impacted the effective tax rate | 24 | $ 31 | |
Unusable Losses [Member] | |||
Taxes on Income | |||
Increase (decrease) in valuation allowances | 15 | ||
Federal and foreign | |||
Taxes on Income | |||
Net operating loss carryforwards | 246 | ||
Federal | Tax Credit Carryforwards [Member] | |||
Taxes on Income | |||
Net operating loss carryforwards | 107 | ||
Foreign.. | Tax Credit Carryforwards [Member] | |||
Taxes on Income | |||
Increase (decrease) in valuation allowances | (46) | ||
Foreign.. | Tax Law Changes [Member] | |||
Taxes on Income | |||
Increase (decrease) in valuation allowances | (6) | ||
State | |||
Taxes on Income | |||
Net operating loss carryforwards | $ 55 | ||
Rexam | Business Acquisition Differences [Member] | |||
Taxes on Income | |||
Increase (decrease) in valuation allowances | $ 19 |
Taxes on Income - Uncertain Tax
Taxes on Income - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Balance at the beginning of the period | $ 80 | $ 84 | $ 77 |
Additions based on tax positions related to the current year | 14 | 18 | |
Additions for tax positions of prior years | 1 | ||
Reductions for tax positions of prior years | (4) | ||
Reductions for settlements | (7) | ||
Reductions due to lapse of statute of limitations | (16) | (10) | (12) |
Decrease resulting from foreign currency exchange rates | (1) | (4) | |
Increase resulting from foreign currency exchange rates | 7 | ||
Balance at the end of the period | 63 | 80 | 84 |
Tax benefit related to uncertain tax positions included in annual provision for income taxes | 19 | 1 | 3 |
Amount of unrecognized tax benefits that, if recognized, would reduce tax expense | 74 | ||
Additional income tax expense related to interest on unrecognized tax benefit | (3) | (1) | (4) |
Accrued interest related to unrecognized tax benefit | 6 | 6 | 7 |
Accrued penalties related to unrecognized tax benefit | 6 | $ 9 | $ 10 |
Minimum | |||
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Amount by which it is reasonably possible that unrecognized tax benefits may decrease within the next 12 months | 13 | ||
Maximum | |||
A roll forward of the unrecognized tax benefits related to uncertain income tax positions | |||
Amount by which it is reasonably possible that unrecognized tax benefits may decrease within the next 12 months | $ 19 |
Employee Benefit Obligations -
Employee Benefit Obligations - General (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Liability | |||
Underfunded defined benefit pension liabilities | $ 918 | $ 954 | |
Less current portion | (24) | (25) | |
Long-term defined benefit pension liabilities | 894 | 929 | |
Long-term retiree medical liabilities | 156 | 157 | |
Deferred compensation plans | 362 | 291 | |
Other | 74 | 78 | |
Total employee benefit obligations | 1,486 | 1,455 | |
Amounts recognized in the consolidated balance sheets | |||
Long-term pension assets | 437 | 559 | |
Defined Benefit Pension Plans | |||
Amounts recognized in the consolidated balance sheets | |||
Long-term pension assets | 437 | 559 | |
Defined benefit pension liabilities | (918) | (954) | |
Net amount recognized | (481) | (395) | |
US Plan | Defined Benefit Pension Plans | |||
Amounts recognized in the consolidated balance sheets | |||
Defined benefit pension liabilities | (647) | (678) | |
Net amount recognized | (647) | (678) | |
Annuitized Unfunded Obligation | 32 | 30 | |
Annuitized Unfunded Corresponding Asset | 27 | 30 | |
US Plan | Defined Benefit Pension Plans | Other current assets | |||
Amounts recognized in the consolidated balance sheets | |||
Annuitized Unfunded Corresponding Asset | 3 | 3 | |
US Plan | Defined Benefit Pension Plans | Other assets | |||
Amounts recognized in the consolidated balance sheets | |||
Annuitized Unfunded Corresponding Asset | 24 | 27 | |
Foreign | Defined Benefit Pension Plans | |||
Amounts recognized in the consolidated balance sheets | |||
Long-term pension assets | 437 | 559 | |
Defined benefit pension liabilities | (271) | (276) | |
Net amount recognized | $ 166 | $ 283 | |
U.K. | Defined Benefit Pension Plans | |||
Retirement Benefits, Description [Abstract] | |||
Increase to pension obligation due to U.K. High Court judgment | $ 52 |
Employee Benefit Obligations _2
Employee Benefit Obligations - Funded Status of Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at prior year end | $ 5,570 | $ 6,493 | |
Service cost | 61 | 65 | $ 66 |
Interest cost | 173 | 171 | 216 |
Benefits paid | (396) | (385) | |
Net actuarial (gain) loss | 715 | (399) | |
Curtailments and settlements including special termination benefits | (34) | (252) | |
Plan amendments | 52 | ||
Other | 1 | 2 | |
Effect of exchange rates and other | 107 | (177) | |
Benefit obligation at year end | 6,197 | 5,570 | 6,493 |
Change in plan assets: | |||
Fair value of plan assets at prior year end | 5,175 | 6,052 | |
Actual return on plan assets | 624 | (116) | |
Employer contributions | 192 | 38 | |
Contributions to unfunded plans | 24 | 27 | |
Benefits paid | 396 | 385 | |
Curtailment and settlement losses including special termination benefits | (34) | (256) | |
Other | 10 | ||
Effect of exchange rates | 131 | (195) | |
Fair value of plan assets at end of year | 5,716 | 5,175 | 6,052 |
Funded status | (481) | (395) | |
Amounts recognized in accumulated other comprehensive (earnings) loss | |||
Net actuarial (loss) gain | (714) | (423) | |
Net prior service (cost) credit | (34) | (34) | |
Tax effect and currency exchange rates | 190 | 180 | |
Accumulated other comprehensive (earnings) loss | (558) | (277) | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 3,177 | 2,933 | |
Accumulated benefit obligation | 3,093 | 2,870 | |
Fair value of plan assets | 2,259 | 1,980 | |
Defined Benefit Pension Plans | US Plan | |||
Change in projected benefit obligation: | |||
Benefit obligation at prior year end | 2,579 | 3,061 | |
Service cost | 50 | 51 | 49 |
Interest cost | 101 | 99 | 124 |
Benefits paid | (205) | (191) | |
Net actuarial (gain) loss | 324 | (189) | |
Curtailments and settlements including special termination benefits | (252) | ||
Benefit obligation at year end | 2,849 | 2,579 | 3,061 |
Change in plan assets: | |||
Fair value of plan assets at prior year end | 1,901 | 2,420 | |
Actual return on plan assets | 313 | (119) | |
Employer contributions | 188 | 32 | |
Contributions to unfunded plans | 6 | 7 | |
Benefits paid | 205 | 191 | |
Curtailment and settlement losses including special termination benefits | (256) | ||
Other | (1) | 8 | |
Fair value of plan assets at end of year | 2,202 | 1,901 | 2,420 |
Funded status | (647) | (678) | |
Amounts recognized in accumulated other comprehensive (earnings) loss | |||
Net actuarial (loss) gain | (683) | (563) | |
Net prior service (cost) credit | 15 | 16 | |
Tax effect and currency exchange rates | 174 | 216 | |
Accumulated other comprehensive (earnings) loss | (494) | (331) | |
Accumulated benefit obligation | 2,769 | 2,519 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 2,849 | 2,579 | |
Accumulated benefit obligation | 2,769 | 2,519 | |
Fair value of plan assets | 2,202 | 1,901 | |
Defined Benefit Pension Plans | Foreign | |||
Change in projected benefit obligation: | |||
Benefit obligation at prior year end | 2,991 | 3,432 | |
Service cost | 11 | 14 | 17 |
Interest cost | 72 | 72 | 92 |
Benefits paid | (191) | (194) | |
Net actuarial (gain) loss | 391 | (210) | |
Curtailments and settlements including special termination benefits | (34) | ||
Plan amendments | 52 | ||
Other | 1 | 2 | |
Effect of exchange rates and other | 107 | (177) | |
Benefit obligation at year end | 3,348 | 2,991 | 3,432 |
Change in plan assets: | |||
Fair value of plan assets at prior year end | 3,274 | 3,632 | |
Actual return on plan assets | 311 | 3 | |
Employer contributions | 4 | 6 | |
Contributions to unfunded plans | 18 | 20 | |
Benefits paid | 191 | 194 | |
Curtailment and settlement losses including special termination benefits | (34) | ||
Other | 1 | 2 | |
Effect of exchange rates | 131 | (195) | |
Fair value of plan assets at end of year | 3,514 | 3,274 | $ 3,632 |
Funded status | 166 | 283 | |
Amounts recognized in accumulated other comprehensive (earnings) loss | |||
Net actuarial (loss) gain | (31) | 140 | |
Net prior service (cost) credit | (49) | (50) | |
Tax effect and currency exchange rates | 16 | (36) | |
Accumulated other comprehensive (earnings) loss | (64) | 54 | |
Accumulated benefit obligation | 3,345 | 2,988 | |
Benefit plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 328 | 354 | |
Accumulated benefit obligation | 324 | 351 | |
Fair value of plan assets | 57 | 79 | |
Defined Benefit Pension Plans | U.K. | |||
Change in plan assets: | |||
Fair value of plan assets at prior year end | 3,195 | ||
Fair value of plan assets at end of year | 3,457 | 3,195 | |
Unfunded Plan | German, Swedish And U.S. | |||
Benefit plans with an accumulated benefit obligation in excess of plan assets | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Obligations _3
Employee Benefit Obligations - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ball-sponsored plans: | ||||
Curtailment and settlement losses including special termination benefits | $ 8 | |||
Total net periodic benefit cost | 47 | |||
Business consolidation and other activities | ||||
Ball-sponsored plans: | ||||
Settlement loss | 8 | $ 36 | $ 44 | |
Selling, general and administrative | ||||
Ball-sponsored plans: | ||||
Non-service pension income | 22 | 5 | (21) | |
Forecast | ||||
Ball-sponsored plans: | ||||
Total net periodic benefit cost | $ 49 | |||
US Plan | ||||
Ball-sponsored plans: | ||||
Pension benefit obligation to be transferred | 32 | 176 | 224 | |
Defined Benefit Pension Plans | ||||
Ball-sponsored plans: | ||||
Service cost | 61 | 65 | 66 | |
Interest cost | 173 | 171 | 216 | |
Expected return on plan assets | (225) | (216) | (236) | |
Amortization of prior service cost | 4 | 2 | 2 | |
Recognized net actuarial loss | 26 | 38 | 39 | |
Curtailment and settlement losses including special termination benefits | 8 | 36 | 46 | |
Net periodic benefit cost for Ball sponsored plans | 47 | 96 | 133 | |
Net periodic benefit cost for multiemployer plans | 1 | 2 | 2 | |
Total net periodic benefit cost | 48 | 98 | 135 | |
Non-service pension income | 1 | 2 | ||
Estimated actuarial net gain (loss) that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during next fiscal year | (41) | |||
Estimated prior service cost (benefit) that will be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost during next fiscal year | 1 | |||
Defined Benefit Pension Plans | US Plan | ||||
Ball-sponsored plans: | ||||
Service cost | 50 | 51 | 49 | |
Interest cost | 101 | 99 | 124 | |
Expected return on plan assets | (116) | (108) | (126) | |
Amortization of prior service cost | 1 | 2 | 2 | |
Recognized net actuarial loss | 22 | 33 | 34 | |
Curtailment and settlement losses including special termination benefits | 36 | 47 | ||
Net periodic benefit cost for Ball sponsored plans | 58 | 113 | 130 | |
Net periodic benefit cost for multiemployer plans | 1 | 2 | 2 | |
Total net periodic benefit cost | 59 | 115 | 132 | |
Expected benefit payments | ||||
2020 | 393 | |||
2021 | 361 | |||
2022 | 366 | |||
2023 | 370 | |||
2024 | 373 | |||
Years 2025 through 2029 | 1,900 | |||
Defined Benefit Pension Plans | Foreign | ||||
Ball-sponsored plans: | ||||
Service cost | 11 | 14 | 17 | |
Interest cost | 72 | 72 | 92 | |
Expected return on plan assets | (109) | (108) | (110) | |
Amortization of prior service cost | 3 | |||
Recognized net actuarial loss | 4 | 5 | 5 | |
Curtailment and settlement losses including special termination benefits | 8 | (1) | ||
Net periodic benefit cost for Ball sponsored plans | (11) | (17) | 3 | |
Total net periodic benefit cost | (11) | (17) | $ 3 | |
Non-service pension income | $ 1 | $ 2 | ||
Excluding German Swedish And Certain U S Plans | Defined Benefit Pension Plans | US Plan | Forecast | ||||
Ball-sponsored plans: | ||||
Contributions to pension plans | $ 90 |
Employee Benefit Obligations _4
Employee Benefit Obligations - Weighted Average Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Pension expense | $ 47 | |||
Curtailment and settlement losses including special termination benefits | $ 8 | |||
Corridor percentage considered for amortization of accumulated actuarial gains and losses | 10.00% | |||
Forecast | ||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Pension expense | $ 49 | |||
Defined Benefit Pension Plans | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Effect of one quarter of a percentage point reduction in the expected return on pension assets assumption, on pension expense | $ 14 | |||
Effect of quarter of a percentage point reduction in the discount rate applied to the pension liability, on pension expense | 1 | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Pension expense | 48 | $ 98 | $ 135 | |
Curtailment and settlement losses including special termination benefits | 8 | 36 | 46 | |
Market related value of plan assets used to calculate expected return | $ 5,375 | $ 6,052 | $ 6,121 | |
US Plan | Defined Benefit Pension Plans | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 3.35% | 4.41% | 3.72% | |
Rate of compensation increase (as a percent) | 4.03% | 4.02% | 4.15% | |
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 4.41% | 3.72% | 4.27% | |
Rate of compensation increase (as a percent) | 4.02% | 4.15% | 4.14% | |
Expected long-term rate of return on assets (as a percent) | 5.58% | 5.14% | 5.50% | |
Pension expense | $ 59 | $ 115 | $ 132 | |
Curtailment and settlement losses including special termination benefits | 36 | 47 | ||
Foreign | Defined Benefit Pension Plans | ||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Pension expense | (11) | $ (17) | 3 | |
Curtailment and settlement losses including special termination benefits | $ 8 | $ (1) | ||
U.K. | Defined Benefit Pension Plans | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 2.07% | 2.90% | 2.55% | |
Rate of compensation increase (as a percent) | 3.50% | 3.50% | 4.41% | |
Pension increase (as a percent) | 3.22% | 3.45% | 3.41% | |
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 2.90% | 2.55% | 2.70% | |
Rate of compensation increase (as a percent) | 3.50% | 4.41% | 4.30% | |
Pension increase (as a percent) | 3.45% | 3.41% | 3.41% | |
Expected long-term rate of return on assets (as a percent) | 3.40% | 3.05% | 3.20% | |
Germany | Defined Benefit Pension Plans | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 1.11% | 1.74% | 1.68% | |
Rate of compensation increase (as a percent) | 2.50% | 2.50% | 2.50% | |
Pension increase (as a percent) | 1.50% | 1.50% | 1.50% | |
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 1.74% | 1.68% | 1.52% | |
Rate of compensation increase (as a percent) | 2.50% | 2.50% | 2.50% | |
Pension increase (as a percent) | 1.50% | 1.50% | 1.50% |
Employee Benefit Obligations _5
Employee Benefit Obligations - Asset Categories (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
U.K. | Minimum | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 60.00% | |
U.K. | Minimum | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 60.00% | |
U.K. | Minimum | Equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 0.00% | |
U.K. | Minimum | Alternative investments | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 0.00% | |
U.K. | Maximum | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 100.00% | |
U.K. | Maximum | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 100.00% | |
U.K. | Maximum | Equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 20.00% | |
U.K. | Maximum | Alternative investments | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 20.00% | |
Defined Benefit Pension Plans | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 100.00% | 100.00% |
Defined Benefit Pension Plans | Cash and cash equivalents | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 2.00% | 2.00% |
Defined Benefit Pension Plans | Fixed income securities | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 79.00% | 69.00% |
Defined Benefit Pension Plans | Equity securities | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 17.00% | 28.00% |
Defined Benefit Pension Plans | Alternative investments | ||
Target asset allocations | ||
Weighted average asset allocations (as a percent) | 2.00% | 1.00% |
Defined Benefit Pension Plans | U.K. | Minimum | Fixed Income Securities And Cash And Cash Equivalents Combined | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 60.00% | |
Defined Benefit Pension Plans | U.K. | Maximum | Fixed Income Securities And Cash And Cash Equivalents Combined | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 100.00% | |
Legacy Ball | US Plan | Minimum | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 0.00% | |
Legacy Ball | US Plan | Minimum | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 25.00% | |
Legacy Ball | US Plan | Minimum | Equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Ball | US Plan | Minimum | Alternative investments | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 0.00% | |
Legacy Ball | US Plan | Maximum | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Ball | US Plan | Maximum | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 70.00% | |
Legacy Ball | US Plan | Maximum | Equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 75.00% | |
Legacy Ball | US Plan | Maximum | Alternative investments | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 35.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Large-cap equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 25.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Mid-cap equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Small-cap equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Foreign equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 35.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Special equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 35.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Holdings in Ball Corporation common stock or Ball bonds | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 5.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Non-investment grade bonds | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | Bank loans | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Ball | Defined Benefit Pension Plans | US Plan | Maximum | International bonds | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 15.00% | |
Legacy Rexam | US Plan | Minimum | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 0.00% | |
Legacy Rexam | US Plan | Minimum | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 75.00% | |
Legacy Rexam | US Plan | Minimum | Equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Rexam | US Plan | Maximum | Cash and cash equivalents | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Rexam | US Plan | Maximum | Fixed income securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 90.00% | |
Legacy Rexam | US Plan | Maximum | Equity securities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 25.00% | |
Legacy Rexam | Defined Benefit Pension Plans | US Plan | Maximum | Domestic equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 20.00% | |
Legacy Rexam | Defined Benefit Pension Plans | US Plan | Maximum | International equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% | |
Legacy Rexam | Defined Benefit Pension Plans | US Plan | Maximum | Private equities | ||
Target asset allocations | ||
Target asset allocations (as a percent) | 10.00% |
Employee Benefit Obligations _6
Employee Benefit Obligations - Fair Value of Assets (Details) - Defined Benefit Pension Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension assets at fair value | |||
Total assets. | $ 5,716 | $ 5,175 | $ 6,052 |
US Plan | |||
Pension assets at fair value | |||
Total assets. | 2,202 | 1,901 | 2,420 |
US Plan | Fair Value Inputs Level 1 And Level 2 | |||
Pension assets at fair value | |||
Total assets. | 2,034 | 1,741 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Cash and cash equivalents | |||
Pension assets at fair value | |||
Total assets. | 99 | 98 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Consumer discretionary Securities | |||
Pension assets at fair value | |||
Total assets. | 83 | 61 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Financials corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 64 | 54 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Healthcare Corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 63 | 49 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Industrials corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 76 | 59 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Information technology corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 111 | 73 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Utilities Equity Securities [Member] | |||
Pension assets at fair value | |||
Total assets. | 48 | ||
US Plan | Fair Value Inputs Level 1 And Level 2 | Other corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 18 | 50 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | FHLMC mortgage backed securities | |||
Pension assets at fair value | |||
Total assets. | 42 | 40 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | FNMA mortgage backed securities | |||
Pension assets at fair value | |||
Total assets. | 73 | 65 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Municipal bonds | |||
Pension assets at fair value | |||
Total assets. | 27 | 52 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Treasury bonds | |||
Pension assets at fair value | |||
Total assets. | 69 | 45 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | U.S. government and agency securities-Other | |||
Pension assets at fair value | |||
Total assets. | 45 | 10 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Communications | |||
Pension assets at fair value | |||
Total assets. | 79 | 67 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Consumer discretionary | |||
Pension assets at fair value | |||
Total assets. | 99 | 80 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Consumer staples | |||
Pension assets at fair value | |||
Total assets. | 100 | 41 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Financials | |||
Pension assets at fair value | |||
Total assets. | 261 | 245 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Healthcare | |||
Pension assets at fair value | |||
Total assets. | 91 | 88 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Industrials | |||
Pension assets at fair value | |||
Total assets. | 101 | 100 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Information technology | |||
Pension assets at fair value | |||
Total assets. | 78 | 54 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Oil and gas | |||
Pension assets at fair value | |||
Total assets. | 91 | 103 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Private placement | |||
Pension assets at fair value | |||
Total assets. | 62 | 69 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Utilities | |||
Pension assets at fair value | |||
Total assets. | 101 | 88 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Corporate bonds and notes-Other | |||
Pension assets at fair value | |||
Total assets. | 50 | 60 | |
US Plan | Fair Value Inputs Level 1 And Level 2 | Commingled funds | |||
Pension assets at fair value | |||
Total assets. | 103 | ||
US Plan | Fair Value Inputs Level 1 And Level 2 | International Commingled Funds | |||
Pension assets at fair value | |||
Total assets. | 90 | ||
US Plan | Level 1 | |||
Pension assets at fair value | |||
Total assets. | 554 | 410 | |
US Plan | Level 1 | Cash and cash equivalents | |||
Pension assets at fair value | |||
Total assets. | 1 | ||
US Plan | Level 1 | Consumer discretionary Securities | |||
Pension assets at fair value | |||
Total assets. | 83 | 61 | |
US Plan | Level 1 | Financials corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 64 | 54 | |
US Plan | Level 1 | Healthcare Corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 63 | 49 | |
US Plan | Level 1 | Industrials corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 76 | 59 | |
US Plan | Level 1 | Information technology corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 111 | 73 | |
US Plan | Level 1 | Utilities Equity Securities [Member] | |||
Pension assets at fair value | |||
Total assets. | 48 | ||
US Plan | Level 1 | Other corporate equity securities | |||
Pension assets at fair value | |||
Total assets. | 18 | 50 | |
US Plan | Level 1 | Treasury bonds | |||
Pension assets at fair value | |||
Total assets. | 69 | 45 | |
US Plan | Level 1 | Commingled funds | |||
Pension assets at fair value | |||
Total assets. | 22 | ||
US Plan | Level 1 | International Commingled Funds | |||
Pension assets at fair value | |||
Total assets. | 18 | ||
US Plan | Level 2 | |||
Pension assets at fair value | |||
Total assets. | 1,480 | 1,331 | |
US Plan | Level 2 | Cash and cash equivalents | |||
Pension assets at fair value | |||
Total assets. | 99 | 97 | |
US Plan | Level 2 | FHLMC mortgage backed securities | |||
Pension assets at fair value | |||
Total assets. | 42 | 40 | |
US Plan | Level 2 | FNMA mortgage backed securities | |||
Pension assets at fair value | |||
Total assets. | 73 | 65 | |
US Plan | Level 2 | Municipal bonds | |||
Pension assets at fair value | |||
Total assets. | 27 | 52 | |
US Plan | Level 2 | U.S. government and agency securities-Other | |||
Pension assets at fair value | |||
Total assets. | 45 | 10 | |
US Plan | Level 2 | Corporate bonds and notes-Communications | |||
Pension assets at fair value | |||
Total assets. | 79 | 67 | |
US Plan | Level 2 | Corporate bonds and notes-Consumer discretionary | |||
Pension assets at fair value | |||
Total assets. | 99 | 80 | |
US Plan | Level 2 | Corporate bonds and notes-Consumer staples | |||
Pension assets at fair value | |||
Total assets. | 100 | 41 | |
US Plan | Level 2 | Corporate bonds and notes-Financials | |||
Pension assets at fair value | |||
Total assets. | 261 | 245 | |
US Plan | Level 2 | Corporate bonds and notes-Healthcare | |||
Pension assets at fair value | |||
Total assets. | 91 | 88 | |
US Plan | Level 2 | Corporate bonds and notes-Industrials | |||
Pension assets at fair value | |||
Total assets. | 101 | 100 | |
US Plan | Level 2 | Corporate bonds and notes-Information technology | |||
Pension assets at fair value | |||
Total assets. | 78 | 54 | |
US Plan | Level 2 | Corporate bonds and notes-Oil and gas | |||
Pension assets at fair value | |||
Total assets. | 91 | 103 | |
US Plan | Level 2 | Corporate bonds and notes-Private placement | |||
Pension assets at fair value | |||
Total assets. | 62 | 69 | |
US Plan | Level 2 | Corporate bonds and notes-Utilities | |||
Pension assets at fair value | |||
Total assets. | 101 | 88 | |
US Plan | Level 2 | Corporate bonds and notes-Other | |||
Pension assets at fair value | |||
Total assets. | 50 | 60 | |
US Plan | Level 2 | Commingled funds | |||
Pension assets at fair value | |||
Total assets. | 81 | ||
US Plan | Level 2 | International Commingled Funds | |||
Pension assets at fair value | |||
Total assets. | 72 | ||
US Plan | NAV | |||
Pension assets at fair value | |||
Total assets. | 168 | 160 | |
Foreign | |||
Pension assets at fair value | |||
Total assets. | 3,514 | 3,274 | $ 3,632 |
U.K. | |||
Pension assets at fair value | |||
Total assets. | 3,457 | 3,195 | |
U.K. | Level 1 | |||
Pension assets at fair value | |||
Total assets. | 2,806 | 2,282 | |
U.K. | Level 1 | Cash and cash equivalents | |||
Pension assets at fair value | |||
Total assets. | 40 | 20 | |
U.K. | Level 1 | Equity commingled funds | |||
Pension assets at fair value | |||
Total assets. | 162 | ||
U.K. | Level 1 | U.K. government bonds | |||
Pension assets at fair value | |||
Total assets. | 2,576 | 2,229 | |
U.K. | Level 1 | Other. | |||
Pension assets at fair value | |||
Total assets. | 28 | 33 | |
U.K. | Level 2 | Corporate bonds and notes | |||
Pension assets at fair value | |||
Total assets. | 478 | ||
U.K. | NAV | Investment funds - property | |||
Pension assets at fair value | |||
Total assets. | $ 173 | $ 913 |
Employee Benefit Obligations _7
Employee Benefit Obligations - Other Post-Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefit Obligations | ||
(Income) expense for net periodic benefit cost | $ 47 | |
Forecast | ||
Employee Benefit Obligations | ||
(Income) expense for net periodic benefit cost | $ 49 |
Employee Benefit Obligations _8
Employee Benefit Obligations - Other Postretirement Weighted Average Assumptions (Details) - Other post retirement benefits | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
US Plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 3.24% | 4.35% | 3.64% |
Rate of compensation increase (as a percent) | 4.50% | 4.50% | 4.50% |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 4.35% | 3.64% | 4.16% |
Rate of compensation increase (as a percent) | 4.50% | 4.50% | 4.50% |
Canada | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 3.00% | 3.50% | 3.25% |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 3.50% | 3.25% | 3.50% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2019$ / shares | Apr. 30, 2017$ / shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 23, 2019shares | |
Class of Stock | ||||||
Number of shares of common stock authorized | 1,100,000,000 | |||||
Number of shares of preferred stock authorized | 15,000,000 | |||||
Stock split ratio | 2 | |||||
Percentage increase in quarterly dividends | 50.00% | 54.00% | ||||
Dividends declared (in dollars per share) | $ / shares | $ 0.15 | $ 0.10 | ||||
Stock Repurchase Program [Abstract] | ||||||
Share repurchases, net of issuances | $ | $ 945 | $ 711 | $ 76 | |||
Maximum | ||||||
Stock Repurchase Program [Abstract] | ||||||
Number of shares authorized for repurchase | 50,000,000 | |||||
Series A Junior Participating Preferred Stock | ||||||
Class of Stock | ||||||
Number of shares of preferred stock authorized | 550,000 |
Shareholders' Equity - AOCI Act
Shareholders' Equity - AOCI Activity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Earnings (Loss) | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 3,458 | |
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | |
Stockholders' Equity Attributable to Parent, Ending Balance | 2,949 | $ 3,458 |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | (504) | (307) |
Other comprehensive earnings (loss) before reclassifications | 119 | (197) |
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | |
Stockholders' Equity Attributable to Parent, Ending Balance | (340) | (504) |
Pension and Other Postretirement Benefits (Net of Tax) | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | (277) | (362) |
Other comprehensive earnings (loss) before reclassifications | (223) | 33 |
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings | 18 | 52 |
Reclassification of stranded tax effects | (76) | |
Stockholders' Equity Attributable to Parent, Ending Balance | (558) | (277) |
Effective Derivatives (Net of Tax) | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | (54) | 13 |
Other comprehensive earnings (loss) before reclassifications | 67 | 25 |
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings | (22) | (92) |
Reclassification of stranded tax effects | (3) | |
Stockholders' Equity Attributable to Parent, Ending Balance | (12) | (54) |
Accumulated Other Comprehensive Earnings (Loss). | ||
Accumulated Other Comprehensive Earnings (Loss) | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | (835) | (656) |
Other comprehensive earnings (loss) before reclassifications | (37) | (139) |
Amounts reclassified from accumulated other comprehensive earnings (loss) into earnings | (4) | (40) |
Currency translation recognized in earnings as a result of the transfer of the Argentina steel aerosol business to held for sale | 45 | |
Reclassification of stranded tax effects | (79) | |
Stockholders' Equity Attributable to Parent, Ending Balance | $ (910) | $ (835) |
Shareholders' Equity - AOCI Add
Shareholders' Equity - AOCI Additional Details (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gains (losses) on cash flow hedges | |||||||||||
Net sales | $ 2,719 | $ 2,953 | $ 3,017 | $ 2,785 | $ 2,803 | $ 2,946 | $ 3,101 | $ 2,785 | $ 11,474 | $ 11,635 | $ 10,983 |
Cost of sales (excluding depreciation and amortization) | (9,203) | (9,329) | (8,717) | ||||||||
Selling, general and administrative | (417) | (478) | (514) | ||||||||
Business consolidation and other activities | (244) | (191) | (221) | ||||||||
Earnings before taxes | $ 123 | $ 119 | $ 226 | $ 140 | $ 123 | $ 192 | $ 166 | $ 152 | 608 | 633 | 514 |
Tax benefit (expense) on amounts reclassified into earnings | (71) | (185) | (165) | ||||||||
Net earnings | 536 | 453 | 380 | ||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | |||||||||||
Gains (losses) on cash flow hedges | |||||||||||
Earnings before taxes | 28 | 119 | (78) | ||||||||
Tax benefit (expense) on amounts reclassified into earnings | (6) | (27) | 13 | ||||||||
Net earnings | 22 | 92 | (65) | ||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contracts | |||||||||||
Gains (losses) on cash flow hedges | |||||||||||
Net sales | 18 | 1 | (7) | ||||||||
Cost of sales (excluding depreciation and amortization) | (45) | 54 | 50 | ||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Commodity contract and currency exchange contracts | |||||||||||
Gains (losses) on cash flow hedges | |||||||||||
Selling, general and administrative | 7 | 1 | (1) | ||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Interest rate swap agreements | |||||||||||
Gains (losses) on cash flow hedges | |||||||||||
Interest expense | 1 | ||||||||||
Effective Derivatives (Net of Tax) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | Cross-currency swap | |||||||||||
Gains (losses) on cash flow hedges | |||||||||||
Selling, general and administrative | 35 | 49 | (136) | ||||||||
Interest expense | 12 | 14 | 16 | ||||||||
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 | (24) | (69) | (79) | ||||||||
Tax benefit (expense) on amounts reclassified into earnings | 6 | 17 | 30 | ||||||||
Recognized gain (loss), net of tax | (18) | (52) | (49) | ||||||||
Prior service income (expense) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | |||||||||||
Amortization Of Pension And Other Postretirement Benefits: | |||||||||||
Total before tax effect | (2) | (1) | (1) | ||||||||
Actuarial gains (losses) | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | |||||||||||
Amortization Of Pension And Other Postretirement Benefits: | |||||||||||
Total before tax effect | (14) | (32) | (34) | ||||||||
Effect of pension settlement | Amount Reclassified from Accumulated Other Comprehensive Earnings (Loss) | |||||||||||
Amortization Of Pension And Other Postretirement Benefits: | |||||||||||
Total before tax effect | $ (8) | $ (36) | $ (44) |
Stock-Based Compensation Prog_3
Stock-Based Compensation Programs (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)installment$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | |
Stock option and SSARs | |||
Stock-Based Compensation Programs | |||
Number of equal installments commencing one year from the date of grant | installment | 4 | ||
Vesting period | 1 year | ||
Expiration period of options | 10 years | ||
Outstanding Options, Number of Shares | |||
Beginning of year (in shares) | shares | 15,175,811 | ||
Granted (in shares) | shares | 1,624,395 | ||
Exercised (in shares) | shares | (4,173,273) | ||
Canceled/forfeited (in shares) | shares | (241,473) | ||
End of the period (in shares) | shares | 12,385,460 | 15,175,811 | |
Vested and exercisable, end of period (in shares) | shares | 7,957,900 | ||
Reserved for future grants (in shares) | shares | 19,641,712 | ||
Outstanding Options, Weighted Average Exercise Price | |||
Beginning of year (in dollars per share) | $ / shares | $ 27.45 | ||
Granted (in dollars per share) | $ / shares | 51.42 | ||
Exercised (in dollars per share) | $ / shares | 21.19 | ||
Canceled/forfeited (in dollars per share) | $ / shares | 42.13 | ||
End of period (in dollars per share) | $ / shares | 32.41 | $ 27.45 | |
Vested and exercisable, end of period (in dollars per share) | $ / shares | $ 26.82 | ||
Additional disclosures | |||
Weighted average remaining contractual term of options outstanding | 5 years 6 months | ||
Aggregate intrinsic value of options outstanding | $ | $ 400 | ||
Weighted average remaining contractual term of options vested and exercisable | 4 years 1 month 6 days | ||
Aggregate intrinsic value of options vested and exercisable | $ | $ 301 | ||
Total fair value of options vested | $ | $ 16 | $ 16 | $ 14 |
Weighted average fair value at grant date (in dollars per share) | $ / shares | $ 12.26 | $ 9.07 | $ 7.82 |
Stock options | |||
Additional disclosures | |||
Cash received from options exercised | $ | $ 41 | $ 29 | $ 21 |
Intrinsic value of options exercised | $ | 61 | $ 30 | $ 26 |
Tax benefit from exercise of options | $ | $ 35 | ||
Restricted shares and restricted stock units | |||
Stock-Based Compensation Programs | |||
Vesting period | 5 years | ||
PCEQs | |||
Stock-Based Compensation Programs | |||
Vesting period | 3 years |
Stock-Based Compensation Prog_4
Stock-Based Compensation Programs - Weighted average assumptions (Details) - Stock option and SSARs | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average assumptions used in estimation of fair values of options | |||
Expected dividend yield (as a percent) | 0.79% | 1.03% | 0.89% |
Expected stock price volatility (as a percent) | 20.36% | 21.98% | 19.62% |
Risk-free interest rate (as a percent) | 2.59% | 2.47% | 2.00% |
Expected life of options | 6 years 4 months 24 days | 6 years 1 month 6 days | 5 years 11 months 8 days |
Vesting period | 1 year |
Stock-Based Compensation Prog_5
Stock-Based Compensation Programs - RSA and PCEQ activity (Details) - Restricted shares and restricted stock units | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Stock-Based Compensation Programs | |
Vesting period | 5 years |
Restricted stock activity, Number of shares | |
Beginning of the period (in shares) | shares | 2,875,294 |
Granted (in shares) | shares | 543,384 |
Vested (in shares) | shares | (871,225) |
Canceled/forfeited (in shares) | shares | (108,717) |
End of the period (in shares) | shares | 2,438,736 |
Restricted stock activity, Weighted average grant price | |
Beginning of the period (in dollars per share) | $ / shares | $ 34.17 |
Granted (in dollars per share) | $ / shares | 45.88 |
Vested (in dollars per share) | $ / shares | 30.83 |
Canceled/forfeited (in dollars per share) | $ / shares | 39.68 |
End of the period (in dollars per share) | $ / shares | $ 37.73 |
Stock-Based Compensation Prog_6
Stock-Based Compensation Programs - PCEQs (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation Programs | |||
Share based compensation expense | $ 37 | $ 75 | $ 46 |
Expenses for share-based compensation arrangements, after tax | 33 | 61 | 35 |
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 50 | ||
Expected weighted-average period for recognition of unrecognized stock-based compensation costs | 2 years 2 months 12 days | ||
Special Acquisition Related Incentive Plan [Member] | Business consolidation and other activities | |||
Stock-Based Compensation Programs | |||
Share based compensation expense | $ 6 | 23 | 11 |
PCEQs | |||
Stock-Based Compensation Programs | |||
Vesting period | 3 years | ||
PCEQs | Minimum | |||
Stock-Based Compensation Programs | |||
Vest range of participant's assigned award opportunity (as a percent) | 0.00% | ||
PCEQs | Maximum | |||
Stock-Based Compensation Programs | |||
Vest range of participant's assigned award opportunity (as a percent) | 200.00% | ||
PCEQs | Selling, general and administrative | |||
Stock-Based Compensation Programs | |||
Share based compensation expense | $ 5 | $ 21 | $ 9 |
PCEQs | Special Acquisition Related Incentive Plan [Member] | |||
Stock-Based Compensation Programs | |||
Granted (in shares) | 1.1 |
Stock-Based Compensation Prog_7
Stock-Based Compensation Programs - Compensation expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation Programs | |||
Share based compensation expense | $ 37 | $ 75 | $ 46 |
Expenses for share-based compensation arrangements, after tax | 33 | 61 | 35 |
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 50 | ||
Expected weighted-average period for recognition of unrecognized stock-based compensation costs | 2 years 2 months 12 days | ||
Special Acquisition Related Incentive Plan [Member] | Business consolidation and other activities | |||
Stock-Based Compensation Programs | |||
Share based compensation expense | $ 6 | $ 23 | $ 11 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2019 | Apr. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share | |||||||||||||
Net earnings attributable to Ball Corporation | $ 160 | $ 92 | $ 197 | $ 117 | $ 151 | $ 59 | $ 119 | $ 125 | $ 566 | $ 454 | $ 374 | ||
Basic weighted average common shares | 331,102 | 344,796 | 350,269 | ||||||||||
Effect of dilutive securities (in shares) | 9,019 | 7,525 | 6,716 | ||||||||||
Weighted average shares applicable to diluted earnings per share | 340,121 | 352,321 | 356,985 | ||||||||||
Per basic share (in dollars per share) | $ 0.49 | $ 0.28 | $ 0.59 | $ 0.35 | $ 0.45 | $ 0.17 | $ 0.34 | $ 0.36 | $ 1.71 | $ 1.32 | $ 1.07 | ||
Per diluted share (in dollars per share) | $ 0.48 | $ 0.27 | $ 0.58 | $ 0.34 | $ 0.44 | $ 0.17 | $ 0.34 | $ 0.35 | 1.66 | 1.29 | 1.05 | ||
Dividends declared and paid | |||||||||||||
Dividends declared (in dollars per share) | $ 0.15 | $ 0.10 | |||||||||||
Dividends paid (in dollars per share) | $ 0.55 | $ 0.40 | $ 0.365 | ||||||||||
Stock option and SSARs | |||||||||||||
Options excluded from EPS calculation | |||||||||||||
Number of outstanding options excluded from computation of diluted earnings per share | 4,000 | 2,000 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - General (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)item$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | |
Financial Instruments and Risk Management | |||
Aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 35 | $ 46 | |
Collateral amount posted for derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 0 | $ 0 | |
Cash Flow Hedging | |||
Financial Instruments and Risk Management | |||
Period within which derivative will expire | 2 years | ||
Commodity contracts | |||
Financial Instruments and Risk Management | |||
Number of methods through which entity manages commodity price risk in connection with market price fluctuations of aluminum ingot | item | 2 | ||
Notional amount of derivatives | $ 1,700 | ||
Net gain (loss) expected to be recognized in the consolidated statement of earnings during the next 12 months | (13) | ||
Gain (loss) on derivatives included in AOCI, net of tax | (15) | ||
Commodity contracts | Derivatives Designated As Hedging Instruments | Cash Flow Hedging | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | 1,600 | ||
Interest rate swap and option contracts | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 827,000 | ||
Period within which derivative will expire | 2 years | ||
Currency Exchange Rate Risk | Cash Flow Hedging | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 4,300 | ||
Period within which derivative will expire | 5 years | ||
Net gain (loss) expected to be recognized in the consolidated statement of earnings during the next 12 months | $ (1) | ||
Gain (loss) on derivatives included in AOCI, net of tax | 7 | ||
Cross-currency swap | |||
Financial Instruments and Risk Management | |||
Notional amount of derivatives | $ 1,000 | ||
Net gain (loss) expected to be recognized in the consolidated statement of earnings during the next 12 months | $ (4) | ||
Equity contracts | |||
Financial Instruments and Risk Management | |||
Change in company's stock price (in dollars per share) | $ / shares | $ 1 | ||
Combined notional value (in shares) | shares | 2.9 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Total current derivative contracts, assets | $ 57 | $ 36 |
Total noncurrent derivative contracts, assets | 16 | |
Total current derivative contracts, liabilities | 64 | 62 |
Total noncurrent derivative contracts, liabilities | 1 | 64 |
Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 8 | 10 |
Total current derivative contracts, liabilities | 27 | 53 |
Total noncurrent derivative contracts, liabilities | 1 | 2 |
Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 47 | 21 |
Total noncurrent derivative contracts, assets | 15 | |
Total current derivative contracts, liabilities | 18 | 6 |
Cross-currency and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 2 | 5 |
Total current derivative contracts, liabilities | 19 | 3 |
Total noncurrent derivative contracts, liabilities | 62 | |
Interest rate and other contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 1 | |
Derivatives Designated As Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 13 | 9 |
Total noncurrent derivative contracts, assets | 16 | |
Total current derivative contracts, liabilities | 26 | 45 |
Total noncurrent derivative contracts, liabilities | 1 | 64 |
Derivatives Designated As Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 7 | 9 |
Total current derivative contracts, liabilities | 26 | 42 |
Total noncurrent derivative contracts, liabilities | 1 | 2 |
Derivatives Designated As Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 4 | |
Total noncurrent derivative contracts, assets | 15 | |
Total current derivative contracts, liabilities | 2 | |
Derivatives Designated As Hedging Instruments | Cross-currency and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 2 | |
Total current derivative contracts, liabilities | 1 | |
Total noncurrent derivative contracts, liabilities | 62 | |
Derivatives Designated As Hedging Instruments | Interest rate and other contracts | ||
Fair Value Measurements | ||
Total noncurrent derivative contracts, assets | 1 | |
Derivatives Not Designated as Hedging Instruments | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 44 | 27 |
Total current derivative contracts, liabilities | 38 | 17 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 1 | 1 |
Total current derivative contracts, liabilities | 1 | 11 |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 43 | 21 |
Total current derivative contracts, liabilities | 18 | 4 |
Derivatives Not Designated as Hedging Instruments | Cross-currency and other contracts | ||
Fair Value Measurements | ||
Total current derivative contracts, assets | 5 | |
Total current derivative contracts, liabilities | $ 19 | $ 2 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Impact on Earnings (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | $ 28 | $ 119 | $ (78) | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 159 | 98 | (67) | |
Amounts reclassified into earnings: | ||||
Commodity contracts | 27 | (55) | (43) | |
Interest rate contracts | (1) | |||
Cross currency swap contracts | (47) | (63) | 120 | |
Currency exchange contracts | (7) | (1) | 1 | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 28 | 119 | (78) | |
Stranded tax effects reclassified into retained earnings: | ||||
Reclassification of stranded tax effects | $ 79 | |||
Changes in accumulated other comprehensive earnings (loss) for effective derivatives | 42 | (67) | 35 | |
Commodity contracts | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (10) | (31) | 67 | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | (10) | (31) | 67 | |
Stranded tax effects reclassified into retained earnings: | ||||
Reclassification of stranded tax effects | 2 | |||
Commodity contracts | Net sales | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 18 | 1 | (7) | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 1 | (4) | ||
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 18 | 1 | (7) | |
Commodity contracts | Cost of sales | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (45) | 54 | 50 | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 2 | 8 | (5) | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | (45) | 54 | 50 | |
Interest rate contracts | ||||
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 | |||
Interest rate contracts | Interest expense. | ||||
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 | |||
Foreign currency contracts | Selling, general and administrative | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 7 | 1 | (1) | |
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 111 | 70 | (57) | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 7 | 1 | (1) | |
Equity contracts | Selling, general and administrative | ||||
Impact on Earnings from Derivative Instruments | ||||
Gain (Loss) on Derivatives not Designated as Hedge Instruments | 46 | 19 | (1) | |
Cross-currency swap | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 78 | 69 | (137) | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 78 | 69 | (137) | |
Stranded tax effects reclassified into retained earnings: | ||||
Reclassification of stranded tax effects | (5) | |||
Cross-currency swap | Interest expense. | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 12 | 14 | 16 | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 12 | 14 | 16 | |
Cross-currency swap | Selling, general and administrative | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 35 | 49 | (136) | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 35 | 49 | (136) | |
Currency exchange contracts | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | 17 | (5) | 7 | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | 17 | (5) | 7 | |
Foreign currency and tax impacts | ||||
Impact on Earnings from Derivative Instruments | ||||
Cash Flow Hedge - Reclassified Amount from Accumulated Other Comprehensive Earnings (Loss) | (13) | 19 | 20 | |
Change in fair value of cash flow hedges: | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (13) | $ 19 | $ 20 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Results of Operations (Unaudited) | |||||||||||
Net sales | $ 2,719 | $ 2,953 | $ 3,017 | $ 2,785 | $ 2,803 | $ 2,946 | $ 3,101 | $ 2,785 | $ 11,474 | $ 11,635 | $ 10,983 |
Gross profit | 437 | 468 | 463 | 407 | 431 | 466 | 483 | 418 | 1,775 | 1,798 | |
Earnings before taxes | 123 | 119 | 226 | 140 | 123 | 192 | 166 | 152 | 608 | 633 | 514 |
Net earnings (loss) attributable to Ball Corporation | $ 160 | $ 92 | $ 197 | $ 117 | $ 151 | $ 59 | $ 119 | $ 125 | $ 566 | $ 454 | $ 374 |
Basic earnings (loss) per share (in dollars per share) | $ 0.49 | $ 0.28 | $ 0.59 | $ 0.35 | $ 0.45 | $ 0.17 | $ 0.34 | $ 0.36 | $ 1.71 | $ 1.32 | $ 1.07 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.48 | $ 0.27 | $ 0.58 | $ 0.34 | $ 0.44 | $ 0.17 | $ 0.34 | $ 0.35 | $ 1.66 | $ 1.29 | $ 1.05 |
Depreciation and amortization related to cost of sales | $ 488 | $ 509 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Nov. 30, 2012item | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)a | |
Environmental remediation | |||
Estimated potential liability for all environmental matters | $ 29 | ||
Prior year collections of ICMS amounts realizable | $ 57 | ||
Lower Duwamish Site | |||
Environmental remediation | |||
Total site remediation costs expected to cover river bottom area in excess of amount spent to date | $ 342 | ||
Area of river bottom to be remediated (in acres) | a | 200 | ||
Project costs to date | $ 100 | ||
Lower Duwamish Site | Minimum | |||
Environmental remediation | |||
Number of potentially responsible parties (PRPs) | item | 50 | ||
Number of industrial companies and governmental entities under review | item | 30 | ||
Number of PRP groups discussing allocation proposals | item | 2 |
Indemnifications and Guarante_2
Indemnifications and Guarantees (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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% |
Subsidiary Guarantees of Debt -
Subsidiary Guarantees of Debt - Condensed Consolidating Statement of Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsidiary Guarantees of Debt | |||||||||||
Ownership interest in guarantor subsidiaries (as a percent) | 100.00% | ||||||||||
Net sales | $ 2,719 | $ 2,953 | $ 3,017 | $ 2,785 | $ 2,803 | $ 2,946 | $ 3,101 | $ 2,785 | $ 11,474 | $ 11,635 | $ 10,983 |
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (9,203) | (9,329) | (8,717) | ||||||||
Depreciation and amortization | (678) | (702) | (729) | ||||||||
Selling, general and administrative | (417) | (478) | (514) | ||||||||
Business consolidation and other activities | (244) | (191) | (221) | ||||||||
Total costs and expenses | (10,542) | (10,700) | (10,181) | ||||||||
Earnings before interest and taxes | 932 | 935 | 802 | ||||||||
Interest expense | (317) | (301) | (285) | ||||||||
Debt refinancing and other costs | (7) | (1) | (3) | ||||||||
Total interest expense | (324) | (302) | (288) | ||||||||
Earnings (loss) before taxes | 123 | 119 | 226 | 140 | 123 | 192 | 166 | 152 | 608 | 633 | 514 |
Tax (provision) benefit | (71) | (185) | (165) | ||||||||
Equity in results of affiliates, net of tax | (1) | 5 | 31 | ||||||||
Net earnings | 536 | 453 | 380 | ||||||||
Net (earnings) loss attributable to noncontrolling interests | 30 | 1 | (6) | ||||||||
Net earnings attributable to Ball Corporation | $ 160 | $ 92 | $ 197 | $ 117 | $ 151 | $ 59 | $ 119 | $ 125 | 566 | 454 | 374 |
Comprehensive earnings (loss) attributable to Ball Corporation | 570 | 275 | 659 | ||||||||
Eliminating Adjustments | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | (799) | (797) | (223) | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | 799 | 797 | 223 | ||||||||
Equity in results of subsidiaries | (852) | (840) | (774) | ||||||||
Total costs and expenses | (53) | (43) | (551) | ||||||||
Earnings before interest and taxes | (852) | (840) | (774) | ||||||||
Earnings (loss) before taxes | (852) | (840) | (774) | ||||||||
Net earnings | (852) | (840) | (774) | ||||||||
Net earnings attributable to Ball Corporation | (852) | (840) | (774) | ||||||||
Comprehensive earnings (loss) attributable to Ball Corporation | (953) | (649) | (1,309) | ||||||||
Ball Corporation | Reportable Legal Entities | |||||||||||
Costs and expenses | |||||||||||
Depreciation and amortization | (5) | (6) | (8) | ||||||||
Selling, general and administrative | (74) | (303) | (168) | ||||||||
Business consolidation and other activities | (26) | (108) | (120) | ||||||||
Equity in results of subsidiaries | 711 | 758 | 673 | ||||||||
Intercompany | 221 | 287 | 301 | ||||||||
Total costs and expenses | 827 | 628 | 678 | ||||||||
Earnings before interest and taxes | 827 | 628 | 678 | ||||||||
Interest expense | (318) | (311) | (275) | ||||||||
Debt refinancing and other costs | (7) | (1) | |||||||||
Total interest expense | (325) | (312) | (275) | ||||||||
Earnings (loss) before taxes | 502 | 316 | 403 | ||||||||
Tax (provision) benefit | 64 | 138 | (29) | ||||||||
Net earnings | 566 | 454 | 374 | ||||||||
Net earnings attributable to Ball Corporation | 566 | 454 | 374 | ||||||||
Comprehensive earnings (loss) attributable to Ball Corporation | 570 | 275 | 659 | ||||||||
Guarantor Subsidiaries | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | 6,540 | 6,558 | 5,674 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (5,591) | (5,551) | (4,722) | ||||||||
Depreciation and amortization | (199) | (202) | (209) | ||||||||
Selling, general and administrative | (179) | 15 | (151) | ||||||||
Business consolidation and other activities | (40) | (29) | (56) | ||||||||
Equity in results of subsidiaries | 141 | 82 | 141 | ||||||||
Intercompany | (121) | (194) | (150) | ||||||||
Total costs and expenses | (5,989) | (5,879) | (5,147) | ||||||||
Earnings before interest and taxes | 551 | 679 | 527 | ||||||||
Interest expense | 5 | 12 | 6 | ||||||||
Total interest expense | 5 | 12 | 6 | ||||||||
Earnings (loss) before taxes | 556 | 691 | 533 | ||||||||
Tax (provision) benefit | (49) | (203) | (79) | ||||||||
Equity in results of affiliates, net of tax | (10) | (10) | 14 | ||||||||
Net earnings | 497 | 478 | 468 | ||||||||
Net earnings attributable to Ball Corporation | 497 | 478 | 468 | ||||||||
Comprehensive earnings (loss) attributable to Ball Corporation | 551 | 467 | 731 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Subsidiary Guarantees of Debt | |||||||||||
Net sales | 5,733 | 5,874 | 5,532 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (excluding depreciation and amortization) | (4,411) | (4,575) | (4,218) | ||||||||
Depreciation and amortization | (474) | (494) | (512) | ||||||||
Selling, general and administrative | (164) | (190) | (195) | ||||||||
Business consolidation and other activities | (178) | (54) | (45) | ||||||||
Equity in results of subsidiaries | (40) | ||||||||||
Intercompany | (100) | (93) | (151) | ||||||||
Total costs and expenses | (5,327) | (5,406) | (5,161) | ||||||||
Earnings before interest and taxes | 406 | 468 | 371 | ||||||||
Interest expense | (4) | (2) | (16) | ||||||||
Debt refinancing and other costs | (3) | ||||||||||
Total interest expense | (4) | (2) | (19) | ||||||||
Earnings (loss) before taxes | 402 | 466 | 352 | ||||||||
Tax (provision) benefit | (86) | (120) | (57) | ||||||||
Equity in results of affiliates, net of tax | 9 | 15 | 17 | ||||||||
Net earnings | 325 | 361 | 312 | ||||||||
Net (earnings) loss attributable to noncontrolling interests | 30 | 1 | (6) | ||||||||
Net earnings attributable to Ball Corporation | 355 | 362 | 306 | ||||||||
Comprehensive earnings (loss) attributable to Ball Corporation | $ 402 | $ 182 | $ 578 |
Subsidiary Guarantees of Debt_2
Subsidiary Guarantees of Debt - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | |||||
Cash and cash equivalents | $ 1,798 | $ 721 | $ 448 | ||
Receivables, net | 1,631 | 1,802 | |||
Inventories, net | 1,274 | 1,271 | |||
Other current assets | 181 | $ 139 | 146 | ||
Total current assets | 4,884 | 3,940 | |||
Noncurrent assets | |||||
Property, plant and equipment, net | 4,470 | 4,542 | |||
Goodwill | 4,419 | 4,475 | 4,933 | ||
Intangible assets, net | 2,002 | 2,188 | |||
Other assets | 1,585 | 1,409 | |||
Total assets | 17,360 | 16,554 | |||
Current liabilities | |||||
Short-term debt and current portion of long-term debt | 1,480 | 219 | |||
Accounts payable | 3,136 | 3,095 | |||
Accrued employee costs | 285 | 289 | |||
Other current liabilities | 676 | 489 | 492 | ||
Total current liabilities | 5,577 | 4,095 | |||
Noncurrent liabilities | |||||
Long-term debt | 6,337 | 6,510 | |||
Employee benefit obligations | 1,486 | 1,455 | |||
Long-term derivative liabilities | 1 | 64 | |||
Deferred taxes | 561 | 645 | |||
Deferred taxes | 241 | 237 | |||
Other liabilities | 380 | $ 273 | 287 | ||
Total liabilities | 14,341 | 12,992 | |||
Common stock | 1,178 | 1,157 | |||
Retained earnings | 5,803 | 5,341 | |||
Accumulated other comprehensive earnings (loss) | (910) | (835) | |||
Treasury stock, at cost | (3,122) | (2,205) | |||
Total Ball Corporation shareholders' equity | 2,949 | 3,458 | |||
Noncontrolling interests | 70 | 104 | |||
Total equity | 3,019 | 3,562 | $ 4,046 | $ 3,541 | |
Total liabilities and equity | 17,360 | 16,554 | |||
Eliminating Adjustments | |||||
Current assets | |||||
Intercompany receivables | (2,027) | (2,218) | |||
Total current assets | (2,027) | (2,218) | |||
Noncurrent assets | |||||
Investment in subsidiaries | (9,679) | (14,825) | |||
Total assets | (11,706) | (17,043) | |||
Current liabilities | |||||
Intercompany payables | (2,905) | (2,825) | |||
Total current liabilities | (2,905) | (2,825) | |||
Noncurrent liabilities | |||||
Intercompany long-term notes | 879 | 606 | |||
Total liabilities | (2,026) | (2,219) | |||
Common stock | (2,707) | (7,837) | |||
Preferred stock | (5) | (5) | |||
Retained earnings | (7,992) | (8,028) | |||
Accumulated other comprehensive earnings (loss) | 1,024 | 1,046 | |||
Total Ball Corporation shareholders' equity | (9,680) | (14,824) | |||
Total equity | (9,680) | (14,824) | |||
Total liabilities and equity | (11,706) | (17,043) | |||
Ball Corporation | Reportable Legal Entities | |||||
Current assets | |||||
Cash and cash equivalents | 877 | 4 | |||
Receivables, net | 31 | 21 | |||
Intercompany receivables | 121 | 66 | |||
Other current assets | 24 | 32 | |||
Total current assets | 1,053 | 123 | |||
Noncurrent assets | |||||
Property, plant and equipment, net | 37 | 24 | |||
Investment in subsidiaries | 7,289 | 11,145 | |||
Intangible assets, net | 18 | 18 | |||
Other assets | 331 | 213 | |||
Total assets | 8,728 | 11,523 | |||
Current liabilities | |||||
Short-term debt and current portion of long-term debt | 1,449 | 173 | |||
Accounts payable | 16 | 50 | |||
Intercompany payables | 2,473 | 2,310 | |||
Accrued employee costs | 46 | 39 | |||
Other current liabilities | 177 | 153 | |||
Total current liabilities | 4,161 | 2,725 | |||
Noncurrent liabilities | |||||
Long-term debt | 6,330 | 6,504 | |||
Employee benefit obligations | 824 | 871 | |||
Intercompany long-term notes | (5,385) | (1,977) | |||
Deferred taxes | (231) | (172) | |||
Other liabilities | 80 | 114 | |||
Total liabilities | 5,779 | 8,065 | |||
Common stock | 1,178 | 1,157 | |||
Retained earnings | 5,803 | 5,341 | |||
Accumulated other comprehensive earnings (loss) | (910) | (835) | |||
Treasury stock, at cost | (3,122) | (2,205) | |||
Total Ball Corporation shareholders' equity | 2,949 | 3,458 | |||
Total equity | 2,949 | 3,458 | |||
Total liabilities and equity | 8,728 | 11,523 | |||
Guarantor Subsidiaries | |||||
Current assets | |||||
Receivables, net | 494 | 613 | |||
Intercompany receivables | 360 | 495 | |||
Inventories, net | 550 | 527 | |||
Other current assets | 35 | 35 | |||
Total current assets | 1,439 | 1,670 | |||
Noncurrent assets | |||||
Property, plant and equipment, net | 1,474 | 1,378 | |||
Investment in subsidiaries | 2,489 | 3,779 | |||
Goodwill | 1,190 | 1,191 | |||
Intangible assets, net | 376 | 409 | |||
Other assets | 304 | 215 | |||
Total assets | 7,272 | 8,642 | |||
Current liabilities | |||||
Accounts payable | 1,111 | 1,178 | |||
Intercompany payables | 94 | 49 | |||
Accrued employee costs | 149 | 144 | |||
Other current liabilities | 184 | 119 | |||
Total current liabilities | 1,538 | 1,490 | |||
Noncurrent liabilities | |||||
Employee benefit obligations | 368 | 286 | |||
Intercompany long-term notes | (2,175) | 3 | |||
Deferred taxes | 235 | 169 | |||
Other liabilities | 120 | 45 | |||
Total liabilities | 86 | 1,993 | |||
Common stock | 2,661 | 2,523 | |||
Retained earnings | 5,135 | 4,712 | |||
Accumulated other comprehensive earnings (loss) | (610) | (586) | |||
Total Ball Corporation shareholders' equity | 7,186 | 6,649 | |||
Total equity | 7,186 | 6,649 | |||
Total liabilities and equity | 7,272 | 8,642 | |||
Non-Guarantor Subsidiaries | |||||
Current assets | |||||
Cash and cash equivalents | 921 | 717 | |||
Receivables, net | 1,106 | 1,168 | |||
Intercompany receivables | 1,546 | 1,657 | |||
Inventories, net | 724 | 744 | |||
Other current assets | 122 | 79 | |||
Total current assets | 4,419 | 4,365 | |||
Noncurrent assets | |||||
Property, plant and equipment, net | 2,959 | 3,140 | |||
Investment in subsidiaries | (99) | (99) | |||
Goodwill | 3,229 | 3,284 | |||
Intangible assets, net | 1,608 | 1,761 | |||
Other assets | 950 | 981 | |||
Total assets | 13,066 | 13,432 | |||
Current liabilities | |||||
Short-term debt and current portion of long-term debt | 31 | 46 | |||
Accounts payable | 2,009 | 1,867 | |||
Intercompany payables | 338 | 466 | |||
Accrued employee costs | 90 | 106 | |||
Other current liabilities | 315 | 220 | |||
Total current liabilities | 2,783 | 2,705 | |||
Noncurrent liabilities | |||||
Long-term debt | 7 | 6 | |||
Employee benefit obligations | 294 | 298 | |||
Intercompany long-term notes | 6,681 | 1,368 | |||
Deferred taxes | 557 | 648 | |||
Other liabilities | 180 | 128 | |||
Total liabilities | 10,502 | 5,153 | |||
Common stock | 46 | 5,314 | |||
Preferred stock | 5 | 5 | |||
Retained earnings | 2,857 | 3,316 | |||
Accumulated other comprehensive earnings (loss) | (414) | (460) | |||
Total Ball Corporation shareholders' equity | 2,494 | 8,175 | |||
Noncontrolling interests | 70 | 104 | |||
Total equity | 2,564 | 8,279 | |||
Total liabilities and equity | $ 13,066 | $ 13,432 |
Subsidiary Guarantees of Debt_3
Subsidiary Guarantees of Debt - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) operating activities | $ 1,548 | $ 1,566 | $ 1,478 |
Cash flows from investing activities | |||
Capital expenditures | (598) | (816) | (556) |
Proceeds from business dispositions, net of cash sold | 160 | 539 | (2) |
Other, net | 16 | 71 | 13 |
Cash provided by (used in) investing activities | (422) | (206) | (545) |
Cash Flows from Financing Activities | |||
Long-term borrowings | 2,819 | 1,475 | 765 |
Repayments of long-term borrowings | (1,524) | (1,533) | (1,810) |
Net change in short-term borrowings | (183) | (120) | 184 |
Proceeds from issuances of common stock, net of shares used for taxes | 19 | 28 | 27 |
Acquisitions of treasury stock | (964) | (739) | (103) |
Common stock dividends | (182) | (137) | (129) |
Other, net | (31) | (14) | (7) |
Cash provided by (used in) financing activities | (46) | (1,040) | (1,073) |
Effect of exchange rate changes on cash | (2) | (51) | (8) |
Change in cash, cash equivalents and restricted cash | 1,078 | 269 | (148) |
Cash, cash equivalents and restricted cash - beginning of period | 728 | 459 | 607 |
Cash, cash equivalents and restricted cash - end of period | 1,806 | 728 | 459 |
Ball Corporation | Reportable Legal Entities | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) operating activities | (353) | 6 | 234 |
Cash flows from investing activities | |||
Capital expenditures | (17) | (10) | (6) |
Proceeds from business dispositions, net of cash sold | (65) | 17 | |
Other, net | (5) | (4) | (2) |
Cash provided by (used in) investing activities | (22) | (79) | 9 |
Cash Flows from Financing Activities | |||
Long-term borrowings | 2,813 | 1,475 | 765 |
Repayments of long-term borrowings | (1,516) | (1,525) | (741) |
Net change in short-term borrowings | (174) | (73) | 174 |
Proceeds from issuances of common stock, net of shares used for taxes | 19 | 28 | 27 |
Acquisitions of treasury stock | (964) | (739) | (103) |
Common stock dividends | (182) | (137) | (129) |
Intercompany | 1,283 | 1,054 | (226) |
Other, net | (31) | (11) | |
Cash provided by (used in) financing activities | 1,248 | 72 | (233) |
Effect of exchange rate changes on cash | (6) | ||
Change in cash, cash equivalents and restricted cash | 873 | (1) | 4 |
Cash, cash equivalents and restricted cash - beginning of period | 4 | 5 | 1 |
Cash, cash equivalents and restricted cash - end of period | 877 | 4 | 5 |
Guarantor Subsidiaries | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) operating activities | 752 | 237 | 742 |
Cash flows from investing activities | |||
Capital expenditures | (245) | (431) | (301) |
Proceeds from business dispositions, net of cash sold | 604 | 31 | |
Other, net | 6 | 47 | 31 |
Cash provided by (used in) investing activities | (239) | 220 | (239) |
Cash Flows from Financing Activities | |||
Net change in short-term borrowings | 1 | ||
Intercompany | (513) | (456) | (491) |
Other, net | (1) | (3) | |
Cash provided by (used in) financing activities | (513) | (457) | (493) |
Effect of exchange rate changes on cash | 1 | ||
Change in cash, cash equivalents and restricted cash | 11 | ||
Cash, cash equivalents and restricted cash - beginning of period | (11) | ||
Non-Guarantor Subsidiaries | |||
Subsidiary Guarantees of Debt | |||
Cash provided by (used in) operating activities | 1,149 | 1,323 | 502 |
Cash flows from investing activities | |||
Capital expenditures | (336) | (375) | (249) |
Proceeds from business dispositions, net of cash sold | 160 | (50) | |
Other, net | 15 | 28 | (16) |
Cash provided by (used in) investing activities | (161) | (347) | (315) |
Cash Flows from Financing Activities | |||
Long-term borrowings | 6 | ||
Repayments of long-term borrowings | (8) | (8) | (1,069) |
Net change in short-term borrowings | (9) | (47) | 9 |
Intercompany | (770) | (598) | 717 |
Other, net | (2) | (4) | |
Cash provided by (used in) financing activities | (781) | (655) | (347) |
Effect of exchange rate changes on cash | (2) | (51) | (3) |
Change in cash, cash equivalents and restricted cash | 205 | 270 | (163) |
Cash, cash equivalents and restricted cash - beginning of period | 724 | 454 | 617 |
Cash, cash equivalents and restricted cash - end of period | $ 929 | $ 724 | $ 454 |