Business Consolidation Activities

6 Months Ended

Jul. 01, 2012

Business Consolidation Activities

Business Consolidation Activities

6.Business Consolidation Activities

Following is a summary of business consolidation and other activity charges included in the unaudited condensed consolidated statements of earnings:

	Three months ended						Six months ended
	July 1,			July 3,			July 1,			July 3,
($ in millions)	2012			2011			2012			2011
Metal beverage packaging, Americas & Asia	$	0.3		$	(2.5	)	$	(1.4	)	$	(13.4	)
Metal beverage packaging, Europe	(0.9		)	(0.3		)	(2.7		)	(2.9		)
Corporate and other	(2.2		)	(0.1		)	(3.1		)	(0.1		)
	$	(2.8	)	$	(2.9	)	$	(7.2	)	$	(16.4	)

Following is a summary by segment of the activity in the business consolidation reserves:

($ in millions)	Metal Beverage Packaging, Americas & Asia			Metal Food & Household Products Packaging, Americas			Corporate and Other Costs			Total
Balance at December 31, 2011	$	2.7		$	5.8		$	4.1		$	12.6
Cash payments and other activity	(1.8		)	(2.2		)	(0.3		)	(4.3		)
Balance at July 1, 2012	$	0.9		$	3.6		$	3.8		$	8.3

The carrying value of fixed assets remaining for sale in connection with facility closures was approximately $16.5 million at July 1, 2012.

2012

Metal Beverage Packaging, Americas and Asia

The company recorded charges of $1.7 million in the first quarter of 2012 and a reversal of an accrual of $0.3 million in the second quarter for ongoing plant closure costs, primarily related to the company’s closure of its Torrance, California, U.S., beverage can manufacturing facility (discussed further in the 2011 section below).

Metal Beverage Packaging, Europe, and Corporate

The first and second quarters included charges of $2.5 million and $2.9 million for implementation costs incurred in connection with the planned relocation of the company’s European headquarters from Germany to Switzerland in the third quarter of 2012.

An additional $0.4 million of net charges were recorded in the first six months of 2012, primarily to reflect individually insignificant charges related to previously announced business consolidation and other activities.

2011

Metal Beverage Packaging, Americas and Asia

In January 2011, Ball announced plans to close its Torrance, California, U.S., beverage can manufacturing facility; relocate a 12-ounce can line from the Torrance facility to its Whitby, Ontario, Canada, facility; and expand specialty can production in its Fort Worth, Texas, U.S., facility. The company recorded initial charges of $10.5 million and $2.2 million during the first and second quarters of 2011, respectively, in connection with these activities. Of the total $12.7 million recorded in the first six months, $8.5 million represented severance, pension and other employee benefits; $2.3 million represented the impairment of the plant facility to its net realizable value and $1.9 million represented accelerated depreciation. The impairment charge was subsequently reversed during the third quarter of 2011 and the land and building were sold during the fourth quarter of 2011 for a gain of $6.9 million.

An additional $0.7 million of net charges were recorded in the first quarter of 2011, primarily to reflect individually insignificant charges related to previously announced plant closures.

Metal Beverage Packaging, Europe

In connection with the acquisition of Aerocan discussed in Note 4, the company recorded charges totaling $2.9 million for transaction costs, which were expensed as incurred.