UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Securities registered pursuant to section 12(b) of the Act:
Class | Trading Symbol | Name of Exchange | Outstanding at July 29, 2024 | |||
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
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Accelerated filer ◻ | |
Non-accelerated filer ◻ | Smaller reporting company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Ball Corporation
QUARTERLY REPORT ON FORM 10-Q
For the period ended June 30, 2024
INDEX
Page | ||
1 | ||
1 | ||
1 | ||
2 | ||
Unaudited Condensed Consolidated Balance Sheets at June 30, 2024, and December 31, 2023 | 3 | |
4 | ||
Notes to the Unaudited Condensed Consolidated Financial Statements | ||
5 | ||
6 | ||
7 | ||
9 | ||
11 | ||
12 | ||
12 | ||
13 | ||
13 | ||
13 | ||
14 | ||
14 | ||
14 | ||
15 | ||
15 | ||
16 | ||
16 | ||
Note 18. Equity and Accumulated Other Comprehensive Earnings (Loss) | 18 | |
20 | ||
20 | ||
25 | ||
26 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28 | |
37 | ||
37 | ||
38 |
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
($ in millions, except per share amounts) | 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
Net sales | $ | | $ | | $ | | $ | | ||||
Cost of sales (excluding depreciation and amortization) | ( | ( | ( | ( | ||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||
Selling, general and administrative | ( | ( | ( | ( | ||||||||
Business consolidation and other activities | ( | | ( | ( | ||||||||
Interest income | | | | | ||||||||
Interest expense | ( | ( | ( | ( | ||||||||
Debt refinancing and other costs | ( | — | ( | — | ||||||||
Earnings before taxes | | | | | ||||||||
Tax (provision) benefit | ( | ( | ( | ( | ||||||||
Equity in results of affiliates, net of tax | | | | | ||||||||
Earnings from continuing operations | | | | | ||||||||
Discontinued operations, net of tax | — | | | | ||||||||
Net earnings | | | | | ||||||||
Net earnings attributable to noncontrolling interests | | — | | | ||||||||
Net earnings attributable to Ball Corporation | $ | | $ | | $ | | $ | | ||||
Earnings per share: | ||||||||||||
Basic - continuing operations | $ | | $ | | $ | | $ | | ||||
Basic - discontinued operations | — | | | | ||||||||
Total basic earnings per share | $ | | $ | | $ | | $ | | ||||
Diluted - continuing operations | $ | | $ | | $ | | $ | | ||||
Diluted - discontinued operations | — | | | | ||||||||
Total diluted earnings per share | $ | | $ | | $ | | $ | | ||||
Weighted average shares outstanding: (000s) | ||||||||||||
Basic | | | | | ||||||||
Diluted | | | | | ||||||||
See accompanying notes to the unaudited condensed consolidated financial statements.
1
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Net earnings | $ | | $ | | $ | | $ | | ||||
Other comprehensive earnings (loss): | ||||||||||||
Currency translation adjustment | ( | | ( | | ||||||||
Pension and other postretirement benefits | | | | | ||||||||
Derivatives designated as hedges | | | | | ||||||||
Total other comprehensive earnings (loss) | ( | | | | ||||||||
Income tax (provision) benefit | ( | ( | ( | ( | ||||||||
Total other comprehensive earnings (loss), net of tax | ( | | ( | | ||||||||
Total comprehensive earnings | | | | | ||||||||
Comprehensive earnings attributable to noncontrolling interests | | — | | | ||||||||
Comprehensive earnings attributable to Ball Corporation | $ | | $ | | $ | | $ | | ||||
See accompanying notes to the unaudited condensed consolidated financial statements.
2
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, | December 31, | |||||
($ in millions) |
| 2024 |
| 2023 | ||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | | $ | | ||
Receivables, net | | | ||||
Inventories, net | | | ||||
Other current assets | | | ||||
Current assets held for sale | | | ||||
Total current assets | | | ||||
Noncurrent assets | ||||||
Property, plant and equipment, net | | | ||||
Goodwill | | | ||||
Intangible assets, net | | | ||||
Other assets | | | ||||
Noncurrent assets held for sale | — | | ||||
Total assets | $ | | $ | | ||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Short-term debt and current portion of long-term debt | $ | | $ | | ||
Accounts payable | | | ||||
Accrued employee costs | | | ||||
Other current liabilities | | | ||||
Current liabilities held for sale | — | | ||||
Total current liabilities | | | ||||
Noncurrent liabilities | ||||||
Long-term debt | | | ||||
Employee benefit obligations | | | ||||
Deferred taxes | | | ||||
Other liabilities | | | ||||
Noncurrent liabilities held for sale | — | | ||||
Total liabilities | | | ||||
Equity | ||||||
Common stock ( | | | ||||
Retained earnings | | | ||||
Accumulated other comprehensive earnings (loss) | ( | ( | ||||
Treasury stock, at cost ( | ( | ( | ||||
Total Ball Corporation shareholders' equity | | | ||||
Noncontrolling interests | | | ||||
Total equity | | | ||||
Total liabilities and equity | $ | | $ | | ||
See accompanying notes to the unaudited condensed consolidated financial statements.
3
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30, | ||||||
($ in millions) |
| 2024 |
| 2023 | ||
Cash Flows from Operating Activities | ||||||
Net earnings | $ | | $ | | ||
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | | | ||||
Business consolidation and other activities | | | ||||
Deferred tax provision (benefit) | | ( | ||||
Gain on Aerospace disposal | ( | — | ||||
Pension contributions | ( | ( | ||||
Other, net | | | ||||
Changes in working capital components, net of dispositions | ( | ( | ||||
Cash provided by (used in) operating activities | ( | | ||||
Cash Flows from Investing Activities | ||||||
Capital expenditures | ( | ( | ||||
Business dispositions, net of cash sold | | — | ||||
Other, net | | | ||||
Cash provided by (used in) investing activities | | ( | ||||
Cash Flows from Financing Activities | ||||||
Long-term borrowings | | | ||||
Repayments of long-term borrowings | ( | ( | ||||
Net change in short-term borrowings | | ( | ||||
Acquisitions of treasury stock | ( | ( | ||||
Common stock dividends | ( | ( | ||||
Other, net | | | ||||
Cash provided by (used in) financing activities | ( | | ||||
Effect of exchange rate changes on cash | ( | | ||||
Change in cash, cash equivalents and restricted cash | | | ||||
Cash, cash equivalents and restricted cash - beginning of period | | | ||||
Cash, cash equivalents and restricted cash - end of period | $ | | $ | | ||
See accompanying notes to the unaudited condensed consolidated financial statements.
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1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements (consolidated financial statements) include the accounts of Ball Corporation and its controlled affiliates, including its consolidated variable interest entities (collectively Ball, the company, we or our), and have been prepared by the company. Certain information and footnote disclosures, including critical and significant accounting policies normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted for this quarterly presentation.
Results of operations for the periods shown are not necessarily indicative of results for the year, particularly in view of the seasonality in the packaging segments. These consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and the notes thereto included in the company’s 2023 Annual Report on Form 10-K filed on February 20, 2024, pursuant to the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2023 (annual report).
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and reported amounts of 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 consolidated financial statements reflect all adjustments that are of a normal recurring nature and are necessary to fairly state the results of the periods presented.
On February 16, 2024, the company completed the divestiture of its aerospace business. The transaction represents a strategic shift; therefore, the company’s consolidated financial statements reflect the aerospace business’ financial results as discontinued operations for all periods presented. The aerospace business was historically presented as a reportable segment. Effective as of the first quarter of 2024, the company reports its financial performance in
Unless otherwise specified, these notes to the unaudited condensed consolidated financial statements reflect continuing operations only.
Certain prior year amounts, including amounts related to discontinued operations, have been reclassified in order to conform to the current year presentation. See Note 4 for additional discontinued operations information.
Risks and Uncertainties
Global Economic Environment
Recent data has indicated continued high inflation in the regions where we operate. Current and future inflationary effects may continue to be impacted by, among other things, supply chain disruptions, governmental stimulus or fiscal and monetary policies, changes in interest rates, and changing demand for certain goods and services. We cannot predict with any certainty the impact that rising interest rates, a global or any regional recession, or higher inflation may have on our customers or suppliers. Additionally, we are unable to predict the potential effects that any future pandemic, or the continuation or escalation of global conflicts, including the conflict between Russia and Ukraine and the rising instability in the Middle East, and related sanctions or market disruptions, may have on our business. It remains uncertain how long any of these conditions may last or how severe any of them may become.
5
Ball management has reviewed the estimates used in preparing the company’s consolidated financial statements and the following have a reasonably possible likelihood of being affected, to a material extent, by the direct and indirect impacts of the current global economic environment in the near-term.
| ● | Estimates regarding the future financial performance of the business used in the impairment tests for goodwill, long-lived assets, equity method investments, recoverability of deferred tax assets and estimates regarding cash needs and associated indefinite reinvestment assertions; |
| ● | Estimates of recoverability for customer receivables; |
| ● | Estimates of net realizable value for inventory; and |
| ● | Estimates regarding the likelihood of forecasted transactions associated with hedge accounting positions at June 30, 2024, which could impact the company’s ability to satisfy hedge accounting requirements and result in the recognition of income and/or expenses. |
In addition to the above potential impacts on the estimates used in preparing the consolidated financial statements, the current global economic environment has the potential to increase Ball’s vulnerabilities to near-term severe impacts related to certain concentrations in its business. In line with other companies in the packaging industry, Ball makes the majority of its sales and significant purchases to or from a relatively small number of global, or large regional, customers and suppliers. Furthermore, Ball makes the majority of its sales from a small number of product lines. The potential of the current global economic environment to affect a significant customer or supplier, or to affect demand for certain products to a significant degree, heightens the vulnerability of Ball to these concentrations.
Argentina
Although Ball's functional currency in Argentina is the U.S. dollar, a portion of its transactions are denominated in pesos. During the fourth quarter of 2023, Argentina suddenly devalued its peso relative to the U.S. dollar as one of the economic policies implemented by the new government with the goal of stabilizing and growing the economy. The government has implemented additional policies with the same goal in mind, including additional taxes on the importation of certain goods. The currency devaluation, economic conditions and policies in Argentina make it difficult to manage currency exchange rate risk and may lead to additional adverse effects on the company’s results of operations. Ball’s Argentinean business is presented in its beverage packaging, South America, reportable operating segment. Ball’s peso-denominated net monetary assets in Argentina were approximately $
2. Accounting Pronouncements
Recently Adopted Accounting Standards
Supplier Finance Programs
In 2022, new guidance was issued by the Financial Accounting Standards Board (FASB) with the goal of enhancing transparency around supplier finance programs. On January 1, 2023, Ball adopted all required disclosures effective for 2023, on a retrospective basis. The company will adopt the rollforward disclosure requirements, on a prospective basis, in its 2024 annual report.
The company has several regional supplier finance programs, all of which have substantially similar characteristics, with various financial institutions that act as the paying agent for certain payables of the company. The company establishes these programs through agreements with the financial institutions to enable more efficient payment processing to our suppliers while also providing our suppliers a potential source of liquidity to the extent they enter into a factoring agreement with the financial institutions. Our suppliers’ participation in the programs is voluntary, and the company is not involved in negotiations of the suppliers’ arrangements with the financial institutions to sell their receivables, and our rights and obligations to our suppliers are not impacted by our suppliers’ decisions to sell amounts under these programs. Under these supplier finance programs, the company pays the financial institutions the stated amount of confirmed invoices from its participating suppliers on the original maturity dates of the invoices, which vary based on the negotiated terms with each supplier. All payment terms are short-term in nature and are not dependent on whether the suppliers participate in the supplier finance programs or if the suppliers elect to receive early payment from the financial
6
institutions. Our supplier finance programs do not include any of the following: guarantees to the financial institutions, assets pledged as securities or interest accruing on the obligation prior to the due date.
Based on the review of the facts and circumstances of our supplier finance programs, including but not limited to those noted above, the company has concluded that the characteristics of the obligations due under our supplier finance programs have not changed and remain those of standard accounts payable, rather than indicative of debt.
The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's programs was $
New Accounting Guidance and Disclosure Requirements
Climate Disclosures
In 2024, the Securities and Exchange Commission (SEC) adopted final rules to require disclosures about material climate-related risks, the actual and potential impact of the risks and additional related disclosures. The final rules are currently under a stay by the SEC and the effective dates for the rules are uncertain. The company is continuing to assess the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a prospective basis when the rules become effective for Ball.
Income Tax Disclosures
In 2023, new guidance was issued by the FASB with the goal of providing financial statement users with more information in the income tax rate reconciliation table and regarding income taxes paid. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a prospective basis in its 2025 annual report.
Segment Reporting
In 2023, new guidance was issued by the FASB with the goal of providing financial statement users with more information about reportable segments, including more disaggregated expense information. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a retrospective basis in its 2024 annual report and interim periods thereafter.
3. Business Segment Information
Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the
Beverage packaging, North and Central America: Consists of operations in the U.S., Canada and Mexico that manufacture and sell aluminum beverage containers throughout those countries.
Beverage packaging, EMEA: Consists of operations in numerous countries throughout Europe, as well as Egypt and Turkey, that manufacture and sell aluminum beverage containers throughout those countries.
Beverage packaging, South America: Consists of operations in Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum beverage containers throughout most of South America.
7
As presented in the table below, Other consists of a non-reportable operating segment (beverage packaging, other) that manufactures and sells aluminum beverage containers in India, Saudi Arabia and Myanmar; a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and recloseable aluminum bottles across multiple consumer categories as well as aluminum slugs (aerosol packaging) throughout North America, South America, Europe, and Asia; a non-reportable operating segment that manufactures and sells aluminum cups (aluminum cups); undistributed corporate expenses; and intercompany eliminations and other business activities.
The accounting policies of the segments are the same as those used in the consolidated financial statements, as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, the U.S. and Vietnam that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings.
Summary of Business by Segment
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Net sales | ||||||||||||
Beverage packaging, North and Central America | $ | | $ | | $ | | $ | | ||||
Beverage packaging, EMEA | | | | | ||||||||
Beverage packaging, South America | | | | | ||||||||
Reportable segment sales | | | | | ||||||||
Other | | | | | ||||||||
Net sales | $ | | $ | | $ | | $ | | ||||
Comparable segment operating earnings | ||||||||||||
Beverage packaging, North and Central America | $ | | $ | | $ | | $ | | ||||
Beverage packaging, EMEA | | | | | ||||||||
Beverage packaging, South America | | | | | ||||||||
Reportable segment comparable operating earnings | | | | | ||||||||
Reconciling items | ||||||||||||
Other (a) | | ( | ( | | ||||||||
Business consolidation and other activities | ( | | ( | ( | ||||||||
Amortization of acquired intangibles | ( | ( | ( | ( | ||||||||
Interest expense | ( | ( | ( | ( | ||||||||
Debt refinancing and other costs | ( | — | ( | — | ||||||||
Earnings before taxes | $ | | $ | | $ | | $ | | ||||
| (a) | Includes undistributed corporate expenses, net, of $ |
The company does not disclose total assets by segment as such information is not provided to the chief operating decision maker.
8
4. Acquisitions and Dispositions
Aerospace
In the third quarter of 2023, Ball entered into a Stock Purchase Agreement (Agreement) with BAE Systems, Inc. (BAE) and, for the limited purposes set forth therein, BAE Systems plc, to sell all outstanding equity interests in Ball’s aerospace business. On February 16, 2024, the company completed the divestiture of the aerospace business for a purchase price of $
The sale of the aerospace business represents a strategic shift that will have a major effect on Ball’s operations and financial results, including the removal of the aerospace reportable segment. Due to this shift, for all periods presented, the consolidated financial statements reflect the aerospace business’ financial results as discontinued operations in the unaudited condensed consolidated statements of earnings, and its assets and liabilities are presented as assets and liabilities held for sale in the unaudited condensed consolidated balance sheet as of December 31, 2023. See Note 1 for further information on the basis of presentation.
The following table presents components of discontinued operations, net of tax for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
($ in millions) | 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
Net sales | $ | — | $ | | $ | | $ | | ||||
Cost of sales (excluding depreciation and amortization) | — | ( | ( | ( | ||||||||
Depreciation and amortization | — | ( | ( | ( | ||||||||
Selling, general and administrative | — | ( | ( | ( | ||||||||
Interest expense | — | | — | | ||||||||
Gain on disposition | — | — | | — | ||||||||
Tax (provision) benefit | — | ( | ( | ( | ||||||||
Discontinued operations, net of tax | $ | — | $ | | $ | | $ | | ||||
9
The following table presents assets and liabilities that are classified as held for sale on the unaudited condensed consolidated balance sheet as of December 31, 2023:
December 31, | |||
($ in millions) |
| 2023 | |
Assets | |||
Current assets | |||
Receivables, net | $ | | |
Other current assets | | ||
Total current assets | | ||
Noncurrent assets | |||
Property, plant and equipment, net | | ||
Other assets | | ||
Total assets of discontinued operations | $ | | |
Liabilities | |||
Current liabilities | |||
Accounts payable | $ | | |
Accrued employee costs | | ||
Deferred revenue | | ||
Other current liabilities | | ||
Total current liabilities | | ||
Noncurrent liabilities | |||
Employee benefit obligations | | ||
Other liabilities | | ||
Total liabilities of discontinued operations | $ | | |
The following table presents depreciation and amortization, capital expenditures and significant operating and investing noncash items from discontinued operations for the six months ended June 30, 2024 and 2023 included within the consolidated statements of cash flows. Amounts include adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Six Months Ended June 30, | ||||||
($ in millions) |
| 2024 | 2023 | |||
Provided by (used in) | ||||||
Depreciation and amortization | $ | | $ | | ||
Gain on Aerospace disposal | ( | — | ||||
Capital expenditures | ( | ( | ||||
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 consolidated statements of cash flows. A summary of the PP&E acquired but not yet paid for from discontinued operations is as follows:
Six Months Ended June 30, | ||||||
($ in millions) | 2024 | 2023 | ||||
Supplemental cash flow information: | ||||||
PP&E acquired but not yet paid | $ | | $ | | ||
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5. Revenue from Contracts with Customers
The following table disaggregates the company’s net sales based on the timing of transfer of control:
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
($ in millions) | Point in Time | Over Time | Total |
| Point in Time | Over Time | Total | |||||||||||
2024 | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
2023 | | | | | | | ||||||||||||
Contract Balances
The company did
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, 2023 | $ | | $ | | ||
Increase (decrease) | ( | ( | ||||
Balance at June 30, 2024 | $ | | $ | | ||
During the six months ended June 30, 2024, contract liabilities decreased by million, which is net of cash received of $
11
6. Business Consolidation and Other Activities
Business consolidation and other activities resulted in charges of $
Business consolidation and other activities resulted in income of $
7. | Supplemental Cash Flow Statement Disclosures |
June 30, | ||||||
($ in millions) | 2024 |
| 2023 | |||
| ||||||
Beginning of period: |
| |||||
Cash and cash equivalents | $ | |
| $ | | |
|
| | ||||
Total cash, cash equivalents and restricted cash | $ | |
| $ | | |
| ||||||
End of period: |
| |||||
Cash and cash equivalents | $ | |
| $ | | |
|
| | ||||
Total cash, cash equivalents and restricted cash | $ | |
| $ | | |
The company’s restricted cash is primarily related to receivables factoring programs and represents amounts collected from customers that have not yet been remitted to the banks as of the end of the reporting period.
Noncash investing activities include the acquisition of property, plant and equipment (PP&E) for which payment has not been made. These noncash capital expenditures are excluded from the unaudited condensed consolidated statements of cash flows. A summary of the PP&E acquired but not yet paid, inclusive of amounts related to the historical aerospace business, is as follows:
June 30, | ||||||
($ in millions) | 2024 |
| 2023 | |||
| ||||||
Beginning of period: |
| |||||
PP&E acquired but not yet paid | $ | |
| $ | | |
End of period: |
| |||||
PP&E acquired but not yet paid | $ | |
| $ | | |
12
8. Receivables, Net
June 30, | December 31, | |||||
($ in millions) | 2024 |
| 2023 | |||
Trade accounts receivable | $ | | $ | | ||
Unbilled receivables | | | ||||
Less: Allowance for doubtful accounts | ( | ( | ||||
Net trade accounts receivable | | | ||||
Other receivables | | | ||||
$ | | $ | | |||
The company has entered into several regional committed and uncommitted accounts receivable factoring programs with various financial institutions for certain receivables of the company. The programs are accounted for as true sales of the receivables and had combined limits of approximately $
Other receivables include income and indirect tax receivables, aluminum scrap sale receivables and other miscellaneous receivables.
9. Inventories, Net
June 30, | December 31, | |||||
($ in millions) |
| 2024 |
| 2023 | ||
Raw materials and supplies | $ | | $ | | ||
Finished goods | | | ||||
Less: Inventory reserves | ( | ( | ||||
$ | | $ | | |||
10. Property, Plant and Equipment, Net
June 30, | December 31, | |||||
($ in millions) |
| 2024 |
| 2023 | ||
Land | $ | | $ | | ||
Buildings | | | ||||
Machinery and equipment | | | ||||
Construction-in-progress | | | ||||
| | |||||
Accumulated depreciation | ( | ( | ||||
$ | | $ | | |||
Depreciation expense was $
13
11. Goodwill
($ in millions) |
|
|
|
|
|
|
| Other |
| Total | |||||
Balance at December 31, 2023 | $ | | $ | | $ | | $ | | $ | | |||||
Effects of currency exchange | — | ( | — | ( | ( | ||||||||||
Other | — | — | | — | | ||||||||||
Balance at June 30, 2024 | $ | | $ | | $ | | $ | | $ | | |||||
12. Intangible Assets, Net
June 30, | December 31, | |||||
($ in millions) |
| 2024 |
| 2023 | ||
Acquired customer relationships and other intangibles (net of accumulated amortization and impairment losses of $ | $ | | $ | | ||
Capitalized software (net of accumulated amortization of $ | | | ||||
Other intangibles (net of accumulated amortization of $ | | | ||||
$ | | $ | | |||
Total amortization expense of intangible assets was $
13. Other Assets
June 30, | December 31, | |||||
($ in millions) |
| 2024 |
| 2023 | ||
Long-term pension assets | $ | | $ | | ||
| | |||||
Investments in affiliates | | | ||||
Long-term deferred tax assets | | | ||||
Other | | | ||||
$ | | $ | | |||
Investments in affiliates primarily includes the company’s
14
14. Leases
The company enters into operating leases for buildings, warehouses, office equipment, production equipment, aircraft, land and other types of equipment. The company also enters into finance leases for certain plant equipment. Supplemental balance sheet information related to the company’s leases follows:
June 30, | December 31, | ||||||
($ in millions) | Balance Sheet Location | 2024 | 2023 | ||||
Operating leases: | |||||||
Operating lease ROU asset | $ | | $ | | |||
Current operating lease liabilities | | | |||||
Noncurrent operating lease liabilities | | | |||||
Finance leases: | |||||||
Finance lease ROU assets, net | | | |||||
Current finance lease liabilities | | | |||||
Noncurrent finance lease liabilities | | | |||||
15. Debt
Long-term debt consisted of the following:
June 30, | December 31, | |||||
($ in millions) |
| 2024 |
| 2023 | ||
Senior Notes | ||||||
$ | — | $ | | |||
| | |||||
| | |||||
| | |||||
| | |||||
| | |||||
| | |||||
| | |||||
Senior Credit Facility (at variable rates) | ||||||
U.S. dollar revolver due June 2027 | — | — | ||||
Term A loan due June 2027 ( | | | ||||
| | |||||
Other (including debt issuance costs) | ( | ( | ||||
| | |||||
Less: Current portion | ( | ( | ||||
$ | | $ | | |||
The company’s senior credit facilities include long-term multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $
15
On February 14, 2024, Ball announced a public tender of the $
The fair value of Ball’s long-term debt was estimated to be $
The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The company’s most restrictive debt covenant requires it to maintain a leverage ratio (as defined) of no greater than
16. Taxes on Income
The company’s effective tax rate was
The company’s effective tax rate was
17. Employee Benefit Obligations
June 30, | December 31, | |||||
($ in millions) | 2024 |
| 2023 | |||
Underfunded defined benefit pension liabilities | $ | | $ | | ||
Less: Current portion | ( | ( | ||||
Long-term defined benefit pension liabilities | | | ||||
Long-term retiree medical liabilities | | | ||||
Deferred compensation plans | | | ||||
Other | | | ||||
$ | | $ | | |||
16
Components of net periodic benefit cost associated with the company’s defined benefit pension plans were as follows:
Three Months Ended June 30, | ||||||||||||||||||
2024 | 2023 | |||||||||||||||||
($ in millions) |
| U.S. |
| Non-U.S. |
| Total |
| U.S. |
| Non-U.S. |
| Total | ||||||
Ball-sponsored plans: | ||||||||||||||||||
Service cost | $ | | $ | — | $ | | $ | | $ | | $ | | ||||||
| | | | | | |||||||||||||
( | ( | ( | ( | ( | ( | |||||||||||||
— | — | — | — | — | — | |||||||||||||
| | | — | | | |||||||||||||
Total net periodic benefit cost | $ | ( | $ | | $ | | $ | ( | $ | ( | $ | ( | ||||||
Six Months Ended June 30, | ||||||||||||||||||
2024 | 2023 | |||||||||||||||||
($ in millions) |
| U.S. |
| Non-U.S. |
| Total |
| U.S. |
| Non-U.S. |
| Total | ||||||
Ball-sponsored plans: | ||||||||||||||||||
Service cost | $ | | $ | | $ | | $ | | $ | | $ | | ||||||
| | | | | | |||||||||||||
( | ( | ( | ( | ( | ( | |||||||||||||
— | | | — | | | |||||||||||||
| | | | | | |||||||||||||
Total net periodic benefit cost | $ | ( | $ | | $ | | $ | ( | $ | ( | $ | ( | ||||||
Non-service pension income of $
Contributions to the company’s defined benefit pension plans were $
In November 2023, the Trustee Board of the U.K. defined benefit pension plan entered into an agreement with an insurance company for a bulk annuity purchase, or “buy-in”, for its U.K. defined benefit pension plan to reduce retirement plan risk, while delivering promised benefits to plan participants. This transaction allows the company to reduce volatility by removing investment, longevity, mortality, interest rate and inflation risk upon the transfer of substantially all of the pension plan assets to the insurer in exchange for the group annuity insurance contract. At this time the company retains both the fair value of the annuity contract within plan assets and the pension benefit obligations related to these participants. The plan was frozen on April 5, 2024, and future service accruals were replaced with enhanced defined contribution benefits for the impacted employees. The company anticipates the “buy-out” may occur within two years of the plan freeze, which will trigger a pension settlement that will result in all plan balances, including accumulated pension components within other comprehensive income, being charged to expense as a noncash settlement charge.
17
18. Equity and Accumulated Other Comprehensive Earnings (Loss)
The following tables provide additional details of the company’s equity activity, inclusive of activity related to the aerospace business impacting the company’s equity:
Common Stock | Treasury Stock | Accumulated Other | ||||||||||||||||||||
Number of | Number of | Retained | Comprehensive | Noncontrolling | Total | |||||||||||||||||
($ in millions; share amounts in thousands) |
| Shares |
| Amount |
| Shares |
| Amount |
| Earnings |
| Earnings (Loss) |
| Interest |
| Equity | ||||||
Balance at March 31, 2024 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Net earnings | — | — | — | — | | — | | | ||||||||||||||
Other comprehensive earnings (loss), net of tax | — | — | — | — | — | ( | — | ( | ||||||||||||||
Common dividends | — | — | — | — | ( | — | — | ( | ||||||||||||||
Treasury stock purchases | — | — | ( | ( | — | — | — | ( | ||||||||||||||
Treasury shares reissued | — | — | ( | | — | — | — | | ||||||||||||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | | | — | — | — | — | — | | ||||||||||||||
Distributions from deferred compensation plans and other activity | — | — | — | | ( | — | — | | ||||||||||||||
Balance at June 30, 2024 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Common Stock | Treasury Stock | Accumulated Other | ||||||||||||||||||||
Number of | Number of | Retained | Comprehensive | Noncontrolling | Total | |||||||||||||||||
($ in millions; share amounts in thousands) |
| Shares |
| Amount |
| Shares |
| Amount |
| Earnings |
| Earnings (Loss) |
| Interest |
| Equity | ||||||
Balance at March 31, 2023 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Net earnings | — | — | — | — | | — | — | | ||||||||||||||
Other comprehensive earnings (loss), net of tax | — | — | — | — | — | | — | | ||||||||||||||
Common dividends | — | — | — | — | ( | — | — | ( | ||||||||||||||
Treasury stock purchases | — | — | — | — | — | — | — | — | ||||||||||||||
Treasury shares reissued | — | — | | | — | — | — | | ||||||||||||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | | | — | — | — | — | — | | ||||||||||||||
Other activity | — | — | — | | | — | — | | ||||||||||||||
Balance at June 30, 2023 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Common Stock | Treasury Stock | Accumulated Other | ||||||||||||||||||||
Number of | Number of | Retained | Comprehensive | Noncontrolling | Total | |||||||||||||||||
($ in millions; share amounts in thousands) |
| Shares |
| Amount |
| Shares |
| Amount |
| Earnings |
| Earnings (Loss) |
| Interest |
| Equity | ||||||
Balance at December 31, 2023 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Net earnings | — | — | — | — | | — | | | ||||||||||||||
Other comprehensive earnings (loss), net of tax | — | — | — | — | — | ( | — | ( | ||||||||||||||
Common dividends | — | — | — | — | ( | — | — | ( | ||||||||||||||
Treasury stock purchases | — | — | ( | ( | — | — | — | ( | ||||||||||||||
Treasury shares reissued | — | — | | | — | — | — | | ||||||||||||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | | | — | — | — | — | — | | ||||||||||||||
Distributions from deferred compensation plans and other activity | — | — | — | | — | — | — | | ||||||||||||||
Balance at June 30, 2024 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Common Stock | Treasury Stock | Accumulated Other | ||||||||||||||||||||
Number of | Number of | Retained | Comprehensive | Noncontrolling | Total | |||||||||||||||||
($ in millions; share amounts in thousands) |
| Shares |
| Amount |
| Shares |
| Amount |
| Earnings |
| Earnings (Loss) |
| Interest |
| Equity | ||||||
Balance at December 31, 2022 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Net earnings | — | — | — | — | | — | | | ||||||||||||||
Other comprehensive earnings (loss), net of tax | — | — | — | — | — | | — | | ||||||||||||||
Common dividends | — | — | — | — | ( | — | — | ( | ||||||||||||||
Treasury stock purchases | — | — | ( | ( | — | — | — | ( | ||||||||||||||
Treasury shares reissued | — | — | | | — | — | — | | ||||||||||||||
Shares issued and stock compensation for stock options and other stock plans, net of shares exchanged | | | — | — | — | — | — | | ||||||||||||||
Other activity | — | — | — | | — | — | — | | ||||||||||||||
Balance at June 30, 2023 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
18
On April 24, 2024, Ball’s Board of Directors approved the repurchase by the company of up to a total of
Accumulated Other Comprehensive Earnings (Loss)
The activity related to accumulated other comprehensive earnings (loss) was as follows:
($ in millions) |
|
|
| Pension and |
| Derivatives Designated as Hedges |
| Accumulated | |||||
| |||||||||||||
Balance at December 31, 2023 | $ | ( | $ | ( | (a) | $ | | $ | ( | ||||
Other comprehensive earnings (loss) before reclassifications | ( | | | ( | |||||||||
Amounts reclassified into earnings | — | | ( | ( | |||||||||
Aerospace disposal | — | | — | | |||||||||
Balance at June 30, 2024 | $ | ( | $ | ( | $ | | $ | ( | |||||
(a) Includes amounts associated with the Salaried Employees of Ball Aerospace & Technologies Corp. Pension Plan.
The following table provides additional details of the amounts reclassified into net earnings from accumulated other comprehensive earnings (loss):
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Gains (losses) on cash flow hedges: | ||||||||||||
Commodity contracts recorded in net sales | $ | ( | $ | | $ | ( | $ | | ||||
Commodity contracts recorded in cost of sales | | ( | ( | ( | ||||||||
Currency exchange contracts recorded in selling, general and administrative | | | | | ||||||||
Interest rate contracts recorded in interest expense | | | | | ||||||||
Total before tax effect | | | | — | ||||||||
Tax benefit (expense) on amounts reclassified into earnings | ( | ( | ( | — | ||||||||
Recognized gain (loss), net of tax | $ | | $ | | $ | | $ | — | ||||
Amortization and disposal of pension and other postretirement benefits: (a) | ||||||||||||
Actuarial gains (losses) (b) | $ | ( | $ | | $ | ( | $ | | ||||
Prior service income (expense) (b) | — | ( | ( | ( | ||||||||
Aerospace disposal | — | — | ( | — | ||||||||
Total before tax effect | ( | — | ( | | ||||||||
Tax benefit (expense) on amounts reclassified into earnings | | — | | — | ||||||||
Recognized gain (loss), net of tax | $ | ( | $ | — | $ | ( | $ | | ||||
| (a) | Includes amounts associated with the Salaried Employees of Ball Aerospace & Technologies Corp. Pension Plan |
| (b) | These components are included in the computation of net periodic benefit cost detailed in Note 17. |
19
19. Earnings and Dividends Per Share
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
($ in millions, except per share amounts; shares in thousands) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Earnings from continuing operations attributable to Ball Corporation, net of tax | $ | | $ | | $ | | $ | | ||||
Discontinued operations, net of tax | — | | | | ||||||||
Net earnings attributable to Ball Corporation | $ | | $ | | $ | | $ | | ||||
Basic weighted average common shares | | | | | ||||||||
Effect of dilutive securities | | | | | ||||||||
Weighted average shares applicable to diluted earnings per share | | | | | ||||||||
Basic - continuing operations | $ | | $ | | $ | | $ | | ||||
Basic - discontinued operations | — | | | | ||||||||
Per basic share | $ | | $ | | $ | | $ | | ||||
Diluted - continuing operations | $ | | $ | | $ | | $ | | ||||
Diluted - discontinued operations | — | | | | ||||||||
Per diluted share | $ | | $ | | $ | | $ | | ||||
Certain outstanding options were excluded from the diluted earnings per share calculation because they were anti-dilutive. The excluded options totaled approximately
The company declared and paid dividends of $
20. Financial Instruments and Risk Management
Policies and Procedures
The company employs established risk management policies and procedures, which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to offset any amounts owed with regard to open derivative positions.
Commodity Price Risk - The company manages commodity price risk in connection with market price fluctuations of aluminum through
Interest Rate Risk - The company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. To achieve these objectives, the company may use a variety of interest rate swaps, collars and options to manage its mix of floating and fixed-rate debt.
20
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.
The following table provides additional information related to the commercial risk management derivative instruments described above:
($ in millions) | June 30, 2024 | ||||||||
Commercial risk area | Commodity |
| Currency |
| Interest Rate | ||||
Notional amount of contracts | $ | | $ | | $ | | |||
Net gain (loss) included in AOCI, after-tax | | ( | | ||||||
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months | | | | ||||||
Longest duration of forecasted cash flow hedge transactions in years | |||||||||
Common Stock Price Risk
The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. The company entered into total return swaps to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding through March 2025, and which have a combined notional value of
21
Fair Value Measurements
Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of June 30, 2024, and December 31, 2023, and presented those values in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
June 30, 2024 | ||||||||||
($ in millions) | Balance Sheet Location |
| Derivatives |
| Derivatives not |
| Total | |||
Assets: | ||||||||||
$ | | $ | — | $ | | |||||
| | | ||||||||
| — | | ||||||||
Other current assets | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
| — | | ||||||||
| — | | ||||||||
Other noncurrent assets | $ | | $ | — | $ | | ||||
| ||||||||||
Liabilities: | ||||||||||
$ | | $ | | $ | | |||||
— | | | ||||||||
— | | | ||||||||
Other current liabilities | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
Other noncurrent liabilities | $ | | $ | — | $ | | ||||
22
December 31, 2023 | ||||||||||
($ in millions) | Balance Sheet Location | Derivatives |
| Derivatives not |
| Total | ||||
Assets: | ||||||||||
$ | | $ | — | $ | | |||||
| | | ||||||||
| | | ||||||||
Other current assets | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
Other noncurrent assets | $ | | $ | — | $ | | ||||
| ||||||||||
Liabilities: | ||||||||||
$ | | $ | — | $ | | |||||
— | | | ||||||||
| — | | ||||||||
Other current liabilities | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
Other noncurrent liabilities | $ | | $ | — | $ | | ||||
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 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 present value discounting factor is based on the comparable time period Secured Overnight Financing Rate (SOFR), London Inter-Bank Offered Rate (LIBOR) or 12-month LIBOR. Ball performs validations of the company’s internally derived fair values reported for the company’s financial instruments on a quarterly basis utilizing counterparty valuation statements. The company additionally evaluates counterparty creditworthiness and, as of June 30, 2024, has not identified any circumstances requiring the reported values of the company’s financial instruments be adjusted.
23
The following tables provide the effects of derivative instruments in the unaudited condensed consolidated statements of earnings and on accumulated other comprehensive earnings (loss):
Three Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
($ in millions) |
| Location of Gain (Loss) |
| Cash Flow |
| Gain (Loss) on |
| Cash Flow |
| Gain (Loss) on | ||||
Commodity contracts - manage exposure to customer pricing | Net sales | $ | ( | $ | — | $ | | $ | — | |||||
Commodity contracts - manage exposure to supplier pricing | Cost of sales | | ( | ( | | |||||||||
Interest rate contracts - manage exposure for outstanding debt | | — | | — | ||||||||||
Currency contracts - manage currency exposure | | | | ( | ||||||||||
Equity contracts | — | ( | — | | ||||||||||
Total | $ | | $ | | $ | | $ | | ||||||
Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | ||||||||||||||
($ in millions) |
| Location of Gain (Loss) |
| Cash Flow |
| Gain (Loss) on |
| Cash Flow |
| Gain (Loss) on | |||||
Commodity contracts - manage exposure to customer pricing | Net sales | $ | ( | $ | — | $ | | $ | — | ||||||
Commodity contracts - manage exposure to supplier pricing | Cost of sales | ( | ( | ( | ( | ||||||||||
Interest rate contracts - manage exposure for outstanding debt | | — | | ( | |||||||||||
Currency contracts - manage currency exposure | | | | ( | |||||||||||
Equity contracts | — | | — | | |||||||||||
Total | $ | | $ | | $ | — | $ | | |||||||
24
The changes in accumulated other comprehensive earnings (loss) for derivatives designated as hedges were as follows:
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Amounts reclassified into earnings: | ||||||||||||
Commodity contracts | $ | | $ | ( | $ | | $ | | ||||
Interest rate contracts | ( | ( | ( | ( | ||||||||
Currency exchange contracts | ( | ( | ( | ( | ||||||||
Change in fair value of cash flow hedges: | ||||||||||||
Commodity contracts | | | | | ||||||||
Interest rate contracts | | | | | ||||||||
Currency exchange contracts | | ( | | ( | ||||||||
Currency and tax impacts | ( | ( | ( | ( | ||||||||
$ | | $ | | $ | | $ | | |||||
In July 2024, we entered into and designated two net investment hedges against the net assets of our euro denominated operations. We utilized cross-currency interest rate swaps for which the notional amounts of €
21. Contingencies
Ball is subject to numerous lawsuits, claims or proceedings arising out of the ordinary course of business, including actions related to product liability; personal injury; the use and performance of company products; warranty matters; patent, trademark or other intellectual property infringement; contractual liability; the conduct of the company’s business; tax reporting in domestic and non-U.S. 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 for all currently known and estimable environmental matters are approximately $
On February 1, 2012, Ball Metal Beverage Container Corp. (“BMBCC”) filed suit against Crown Technology Holding, Inc. (“Crown”) in the United States District Court for the Southern District of Ohio seeking a declaratory judgment that the CDL beverage can end made and sold by BMBCC did not infringe certain U.S. patents held by Crown. In response, Crown filed a counterclaim alleging that the CDL ends made and sold by BMBCC infringed the subject patents and seeking damages. On September 25, 2019, the District Court granted BMBCC’s motion for summary judgment holding that the patents at issue were invalid due to indefiniteness. On October 20, 2019, Crown appealed this decision to the Court of Appeals for the Federal Circuit (“CAFC”). On December 31, 2020, the CAFC in a non-precedential decision, vacated the decision of the District Court finding that the District Court had not considered an additional factor under a novel position advanced by the CAFC, and remanded the case to the District Court for further proceedings. On August 2, 2023, the District Court again granted summary judgment to Ball finding that patent claims at issue are invalid due to invalidity under the revised analytical framework specified by the CAFC. On August 4, 2023, Crown appealed this decision to the CAFC. Briefing for this appeal concluded on February 20, 2024. Oral argument is expected to be scheduled during 2024 with a decision to follow. Based on the information available at the present time, the Company is unable to predict the ultimate outcome of this claim including the amount of any reasonably possible loss and we intend to vigorously defend this matter.
25
The company’s operations in Brazil are involved in various governmental assessments, which have historically mainly related to claims for taxes on the internal transfer of inventory, gross revenue taxes, and indirect tax incentives and deductibility of goodwill. In addition, one of the company’s Brazilian subsidiaries received an income tax assessment focused on the disallowance of deductions associated with the acquisition price paid to a third party for a portion of its operations. Based on the information available at the present time, the Company is unable to predict the ultimate outcome of these claims including the amount of reasonably possible loss and intends to vigorously defend these matters.
22. Indemnifications and Guarantees
General Guarantees
The company or its appropriate consolidated direct or indirect subsidiaries have made certain indemnities, commitments and guarantees under which the specified entity may be required to make payments in relation to certain transactions. These indemnities, commitments and guarantees include indemnities to the customers of the subsidiaries in connection with the sales of their packaging products and services; guarantees to suppliers of subsidiaries of the company guaranteeing the performance of the respective entity under a purchase agreement, construction contract, renewable energy purchase contract or other commitment; guarantees in respect of certain non-U.S. subsidiaries’ pension plans; indemnities for liabilities associated with the infringement of third-party patents, trademarks or copyrights under various types of agreements; indemnities to various lessors in connection with facility, equipment, furniture and other personal property leases for certain claims arising from such leases; indemnities pursuant to agreements relating to certain joint ventures; indemnities in connection with the sale of businesses or substantially all of the assets and specified liabilities of businesses; and indemnities to directors, officers and employees of the company to the extent permitted under the laws of the State of Indiana and the United States of America. The duration of these indemnities, commitments and guarantees varies and, in certain cases, is indefinite.
In addition, many of these indemnities, commitments and guarantees do not provide for any limitation on the maximum potential future payments the company could be obligated to make. As such, the company is unable to reasonably estimate its potential exposure under these items.
The company has not recorded any material liabilities for these indemnities, commitments and guarantees in the accompanying unaudited condensed 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.
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Debt Guarantees
The company’s and its subsidiaries’ obligations under the senior notes and senior credit facilities (or, in the case of U.S. domiciled non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. credit parties only) are guaranteed on a full, unconditional and joint and several basis by certain of the company’s domestic subsidiaries and the domestic subsidiary borrowers, and obligations of other guarantors and the subsidiary borrowers under the senior credit facilities are guaranteed by the company, in each case with certain exceptions. These guarantees are required in support of the senior notes and senior credit facilities referred to above, are coterminous with the terms of the respective note indentures, senior notes and credit agreement, and they 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 then-outstanding obligations under the respective senior notes or the credit agreement (or, in the case of U.S. domiciled non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. credit parties only), with certain exceptions. All obligations under the guarantees of the senior credit facilities are secured, with certain exceptions, by a valid first priority perfected lien or pledge on (i) 100 percent of the capital stock of each of the company's material wholly owned domestic subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries and (ii) 65 percent of the capital stock of each of the company's material wholly owned first-tier non-U.S. subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries. In addition, the obligations of certain non-U.S. borrowers and non-U.S. pledgors under the loan documents will be secured, with certain exceptions, by a valid first priority perfected lien or pledge on 100 percent of the capital stock of certain of the company's material wholly owned non-U.S. subsidiaries and material wholly owned U.S. domiciled non-U.S. subsidiaries directly owned by the company or any of its wholly owned material subsidiaries. The company is not in default under the above-referenced senior notes or senior credit facilities.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements (consolidated financial statements) and accompanying notes included in Item 1 of this Quarterly Report on Form 10-Q, which include additional information about our accounting policies, practices and the transactions underlying our financial results. The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions that affect the reported amounts in our consolidated financial statements and the accompanying notes, including various claims and contingencies related to lawsuits, taxes, environmental and other matters arising during the normal course of business. We apply our best judgment, our knowledge of existing facts and circumstances and actions that we may undertake in the future in determining the estimates that affect our consolidated financial statements. We evaluate our estimates on an ongoing basis using our historical experience, as well as other factors we believe appropriate under the circumstances, such as current economic conditions, and adjust or revise our estimates as circumstances change. As future events and their effects cannot be determined with precision, actual results may differ from these estimates. Ball Corporation and its subsidiaries are referred to collectively as “Ball Corporation,” “Ball,” “the company,” “we” or “our” in the following discussion and analysis.
OVERVIEW
Business Overview and Industry Trends
Ball Corporation is one of the world’s leading aluminum packaging suppliers. With a growth mindset and by pursuing operational excellence, we lean on our competitive strengths to reach our financial goals. We are focused on maintaining our strong financial position by listening to and partnering with our global customers, delivering operational efficiencies and an innovative product portfolio from our best-in-class manufacturing facilities and returning value to shareholders via share repurchases and dividends. In the aluminum packaging industry, sales and earnings can be increased by reducing costs, increasing prices, developing new products, expanding volumes and making strategic acquisitions.
We sell our aluminum packaging products mainly to large, multinational beverage, personal care and household products companies with which we have developed long-term relationships. This is evidenced by our high customer retention and our large number of long-term supply contracts. While we have a diversified customer base, we sell a significant portion of our packaging products to major companies and brands, as well as to numerous regional customers. The overall global aluminum beverage and aerosol container industries are growing and are expected to continue to grow in the medium to long term.
We purchase our raw materials from relatively few suppliers. We also have exposure to inflation, in particular the rising costs of raw materials, as well as other direct cost inputs. We mitigate our exposure to the changes in the costs of aluminum through the inclusion of provisions in contracts covering the majority of our volumes to pass through aluminum price changes, as well as through the use of derivative instruments. The pass through provisions generally result in proportional increases or decreases in sales and costs with a greatly reduced impact, if any, on net earnings; however, there may be timing differences of when the costs are passed through. Because of our customer and supplier concentration, our business, financial condition and results of operations could be adversely affected by the loss, insolvency or bankruptcy of a major customer or supplier or a change in a supply agreement with a major customer or supplier, although our contract provisions generally mitigate the risk of customer loss, and our long-term relationships represent a known, stable customer base.
From time to time, we have evaluated and expect to continue to evaluate possible transactions that we believe will benefit the company and our shareholders, which may include strategic acquisitions, divestitures of parts of our company or equity investments. At any time, we may be engaged in discussions or negotiations at various stages of development with respect to one or more possible transactions or may have entered into non-binding letters of intent. As part of any such initiatives, we may participate in processes being run by other companies or leading our own activities.
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RESULTS OF CONSOLIDATED OPERATIONS
Management’s discussion and analysis for our results of operations on a consolidated and segment basis include a quantification of factors that had a material impact. Other factors that did not have a material impact, but that are significant to understand the results, are qualitatively described.
On February 16, 2024, the company completed the divestiture of its aerospace business. Effective as of the first quarter of 2024, the company reports its financial performance in three reportable segments: (1) beverage packaging, North and Central America; (2) beverage packaging, Europe, Middle East and Africa (beverage packaging, EMEA) and (3) beverage packaging, South America. See Note 1 for further information on the basis of presentation.
Global Economic Environment
Recent data has indicated continued high inflation in the regions where we operate. Current and future inflationary effects may continue to be impacted by, among other things, supply chain disruptions, governmental stimulus or fiscal and monetary policies, changes in interest rates, and changing demand for certain goods and services. We cannot predict with any certainty the impact that rising interest rates, a global or any regional recession, or higher inflation may have on our customers or suppliers. Additionally, we are unable to predict the potential effects that any future pandemic, or the continuation or escalation of global conflicts, including the conflict between Russia and Ukraine and the rising instability in the Middle East, and related sanctions or market disruptions, may have on our business. It remains uncertain how long any of these conditions may last or how severe any of them may become.
Consolidated Sales and Earnings
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
Net sales | $ | 2,959 | $ | 3,067 | $ | 5,833 | $ | 6,048 | |||||
Net earnings attributable to Ball Corporation | 158 | 173 | 3,843 | 350 | |||||||||
Net earnings attributable to Ball Corporation as a % of net sales | 5 | % | 6 | % | 66 | % | 6 | % | |||||
Sales in the three months ended June 30, 2024, decreased $108 million compared to the same period in 2023 primarily due to decreases of $69 million from lower sales prices resulting mainly from lower aluminum prices and $32 million from lost volumes as a result of the 2023 fire at the company’s Verona, Virginia extruded aluminum slug manufacturing facility. Sales in the six months ended June 30, 2024, decreased $215 million compared to the same period in 2023 primarily due to decreases of $197 million from lower sales prices resulting mainly from lower aluminum prices and $63 million from lost volumes as a result of the 2023 fire at the company’s Verona, Virginia extruded aluminum slug manufacturing facility.
Net earnings attributable to Ball Corporation for the three months ended June 30, 2024, decreased $15 million compared to the same period in 2023 primarily due to an increase in costs of $66 million from business consolidation and other activities and a decrease of $48 million from lower discontinued operations, net of tax, partially offset by increases of $57 million from the results of the reportable segments discussed below and $48 million from lower interest expense. Net earnings attributable to Ball Corporation for the six months ended June 30, 2024, increased $3.49 billion compared to the same period in 2023 primarily due to increases of $3.51 billion from discontinued operations, net of tax, $83 million from the results of the reportable segments discussed below, $68 million from lower interest expense and $29 million from higher interest income in corporate undistributed expenses, net, partially offset by $82 million of incremental compensation cost from the successful sale of the aerospace business and $72 million from business consolidation and other activities.
When analyzing net earnings attributable to Ball Corporation as a percentage of net sales, it is important to note that net earnings attributable to Ball Corporation includes discontinued operations, net of tax resulting from the net sales attributable to the historical aerospace reportable segment through the date of the divestiture on February 16, 2024, that are now reported as discontinued operations. However, net sales attributable to the historical aerospace reportable segment are not included in the net sales figures in the table above.
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Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales, excluding depreciation and amortization, was $2,357 million and $2,506 million for the three months ended June 30, 2024 and 2023, respectively, and $4,640 million and $4,938 million for the six months ended June 30, 2024 and 2023, respectively. These amounts represented 80 percent and 82 percent of consolidated net sales for the three months ended June 30, 2024 and 2023, respectively, and 80 percent and 82 percent of consolidated net sales for the six months ended June 30, 2024 and 2023, respectively. The decrease for the three months ended June 30, 2024, was primarily due to lower manufacturing costs, including lower aluminum costs of $106 million, and other items discussed in the reportable segment sections below. The decrease for the six months ended June 30, 2024, was primarily due to lower manufacturing costs, including lower aluminum costs of $228 million and lower freight costs of $47 million, and other items discussed in the reportable segment sections below.
Depreciation and Amortization
Depreciation and amortization expense was $152 million and $150 million for the three months ended June 30, 2024 and 2023, respectively, and $310 million and $297 million for the six months ended June 30, 2024 and 2023, respectively. These amounts represented 5 percent of consolidated net sales for the three and six months ended June 30, 2024 and 2023. The increases for the three and six months ended June 30, 2024, were primarily due to the company’s larger depreciable asset base.
Selling, General and Administrative
Selling, general and administrative was $139 million and $157 million for the three months ended June 30, 2024 and 2023, respectively, and $376 million and $276 million for the six months ended June 30, 2024 and 2023, respectively. These amounts represented 5 percent of consolidated net sales for the three months ended June 30, 2024 and 2023, and 6 percent and 5 percent of consolidated net sales for the six months ended June 30, 2024 and 2023, respectively. The decrease for the three months ended June 30, 2024, was primarily due to a decrease in expense of $15 million related to the company’s receivable factoring programs. The increase for the six months ended June 30, 2024, was primarily due to increased compensation costs of $84 million, including incremental compensation cost from the successful sale of the aerospace business consisting of cash bonuses and stock based compensation.
Business Consolidation and Other Activities
Business consolidation and other activities resulted in charges of $60 million and income of $6 million for the three months ended June 30, 2024 and 2023, respectively, and charges of $86 million and $14 million for the six months ended June 30, 2024 and 2023, respectively. The amounts in 2024 and 2023 primarily included facility shutdown costs. Further details regarding business consolidation and other activities are provided in Note 6.
Interest Income
Interest income was $18 million and $7 million for the three months ended June 30, 2024 and 2023, respectively, and $44 million and $11 million for the six months ended June 30, 2024 and 2023, respectively. The increases in interest income for the three and six months ended June 30, 2024, were primarily due to the higher amount of cash on hand in 2024 from the aerospace sale.
Interest Expense
Interest expense was $68 million and $116 million for the three months ended June 30, 2024 and 2023, respectively, and $161 million and $229 million for the six months ended June 30, 2024 and 2023, respectively. Interest expense as a percentage of average borrowings decreased by approximately 10 basis points from 4.8 percent for the three months ended June 30, 2023, to 4.7 percent for the three months ended June 30, 2024, and increased approximately 20 basis points from 4.8 percent for the six months ended June 30, 2023, to 5.0 percent for the six months ended June 30, 2024. The interest expense decrease for the three months ended June 30, 2024, was primarily driven by a decrease of $42 million from a smaller amount of weighted average principal outstanding during the quarter, resulting mainly from the use of proceeds from the aerospace disposal, and a decrease of $4 million from lower weighted average interest rates on outstanding debt during the quarter. The interest expense decrease for the six months ended June 30, 2024, was primarily
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driven by a decrease of $78 million from a smaller amount of weighted average principal outstanding during the year, resulting mainly from the use of proceeds from the aerospace disposal, partially offset by an increase of $11 million from higher weighted average interest rates on outstanding debt during the year. The company expects to carry a smaller amount of weighted average principal throughout 2024 compared to 2023, with nearly all amounts outstanding having fixed rates. See Note 15 for further details.
Income Taxes
The effective tax rate for the three and six months ended June 30, 2024, was 24.5 and 25.2 percent, respectively, compared to 19.2 percent and 20.3 percent for the same periods in 2023. The increases of 5.3 percentage points and 4.9 percentage points for the three and six months ended June 30, 2024, respectively, were primarily due to increases in non-U.S. rate differences and withholding taxes net of credits, state and local taxes and Pillar Two Global Minimum Taxes. Similar impacts may occur in future periods, but given their inherent uncertainty, the company is unable to reasonably estimate their potential future impacts.
RESULTS OF BUSINESS SEGMENTS
Segment Results
Ball’s operations are organized and reviewed by management along its product lines and geographical areas, and its operating results are presented in the three reportable segments discussed below.
Beverage Packaging, North and Central America
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| |||||
Net sales | $ | 1,469 | $ | 1,537 | $ | 2,872 | $ | 3,041 | ||||||
Comparable operating earnings | 210 | 175 | 402 | 358 | ||||||||||
Comparable operating earnings as a % of segment net sales | 14 | % | 11 | % | 14 | % | 12 | % | ||||||
Ball permanently ceased production at its aluminum beverage can manufacturing facility in St. Paul, Minnesota in the first quarter of 2023, permanently ceased production at its aluminum beverage can manufacturing facility in Wallkill, New York in the third quarter of 2023 and permanently ceased production at its aluminum beverage can manufacturing facility in Kent, Washington in the first quarter of 2024.
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Segment sales for the three and six months ended June 30, 2024, were $68 million lower and $169 million lower, respectively, compared to the same periods in 2023. The decrease for the three months ended June 30, 2024, was primarily due to a $77 million decrease from lower sales prices resulting mainly from lower aluminum prices, partially offset by an increase of $9 million from higher volumes. The decrease for the six months ended June 30, 2024, was primarily due to lower sales prices resulting mainly from lower aluminum prices.
Comparable operating earnings for the three and six months ended June 30, 2024, were $35 million higher and $44 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended June 30, 2024, was primarily due to increases of $34 million from lower costs and $11 million from higher volumes. The increase for the six months ended June 30, 2024, was primarily due to increases of $57 million from lower costs, $19 million from higher sales prices resulting mainly from the annual pass-through of inflationary costs net of current year inflation and $10 million from higher volumes, partially offset by a decrease of $32 million from income recognized in 2023 from the termination of a long term power supply contract that offset higher energy costs.
Beverage Packaging, EMEA
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| ||||
Net sales | $ | 880 | $ | 920 | $ | 1,690 | $ | 1,754 | |||||
Comparable operating earnings | 113 | 98 | 198 | 171 | |||||||||
Comparable operating earnings as a % of segment net sales | 13 | % | 11 | % | 12 | % | 10 | % | |||||
Segment sales for the three and six months ended June 30, 2024, were $40 million lower and $64 million lower, respectively, compared to the same periods in 2023. The decreases for the three and six months ended June 30, 2024, were primarily due to decreases from lower sales prices resulting mainly from lower aluminum prices.
Comparable operating earnings for the three and six months ended June 30, 2024, were $15 million higher and $27 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended June 30, 2024, was primarily due to increases of $15 million from higher sales prices resulting mainly from price/mix and $14 million from higher volumes, partially offset by a decrease of $20 million from higher costs. The increase for the six months ended June 30, 2024, was primarily due to increases of $33 million from higher sales prices resulting mainly from price/mix and $28 million from higher volumes, partially offset by a decrease of $41 million from higher costs.
Beverage Packaging, South America
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
($ in millions) |
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| ||||
Net sales | $ | 422 | $ | 405 | $ | 904 | $ | 855 | |||||
Comparable operating earnings | 37 | 30 | 92 | 80 | |||||||||
Comparable operating earnings as a % of segment net sales | 9 | % | 7 | % | 10 | % | 9 | % | |||||
Segment sales for the three and six months ended June 30, 2024, were $17 million higher and $49 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended June 30, 2024, was primarily due to an increase of $39 million from higher sales prices resulting mainly from price/mix, partially offset by a decrease of $12 million from lower volumes. The increase for the six months ended June 30, 2024, was primarily due to increases of $36 million from higher volumes and $27 million from higher sales prices resulting mainly from price/mix.
Comparable operating earnings for the three and six months ended June 30, 2024, were $7 million higher and $12 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended June 30, 2024, was primarily due to higher sales prices resulting mainly from price/mix. The increase for the six months ended June 30, 2024, was primarily due to an increase of $17 million from higher volumes, partially offset by a decrease of $10 million from higher costs.
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Management Performance Measures
Management internally uses various measures to evaluate company performance such as comparable operating earnings (earnings before interest expense, taxes and business consolidation and other non-comparable items); comparable net earnings (net earnings attributable to Ball Corporation before business consolidation and other non-comparable items after tax); comparable diluted earnings per share (comparable net earnings divided by diluted weighted average shares outstanding); return on average invested capital (net operating earnings after tax over the relevant performance period divided by average invested capital over the same period); economic value added (EVA®) dollars (net operating earnings after tax less a capital charge on average invested capital employed); earnings before interest expense, taxes, depreciation and amortization (EBITDA); and diluted earnings per share. In addition, management uses operating cash flows as a measure to evaluate the company’s liquidity. We believe this information is also useful to investors as it provides insight into the earnings and cash flow criteria that management uses to make strategic decisions. These financial measures may be adjusted at times for items that affect comparability between periods, including business consolidation and other non-comparable items.
Nonfinancial measures used in the packaging businesses include production efficiency and spoilage rates; quality control figures; environmental, health and safety statistics; production and sales volume data; asset utilization rates and measures of sustainability. References to sales volume data represent units shipped.
Many of the above noted financial measurements are presented on a non-U.S. GAAP basis and should be considered in connection with the consolidated financial statements included within Item 1 of this report. Non-U.S. GAAP measures should not be considered in isolation and should not be considered superior to, or a substitute for, financial measures calculated in accordance with U.S. GAAP. A presentation of earnings in accordance with U.S. GAAP is available in Item 1 of this report.
NEW ACCOUNTING PRONOUNCEMENTS
For information regarding recent accounting pronouncements, see Note 2 to the consolidated financial statements included within Item 1 of this report on Form 10-Q.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Cash Flows and Capital Expenditures
Our primary sources of liquidity are cash provided by operating activities and external borrowings. We believe that cash flows from operating activities, even in the absence of operating cash flows from the historical aerospace reportable segment, and cash provided by short-term, long-term and committed revolver borrowings, when necessary, will be sufficient to meet our ongoing operating requirements, scheduled principal and interest payments on debt, dividend payments, anticipated share repurchases and anticipated capital expenditures. We have limited near-term debt maturities and our senior credit facilities are in place until 2027. The following table summarizes our cash flows:
Six Months Ended June 30, | ||||||
($ in millions) |
| 2024 |
| 2023 | ||
Cash flows provided by (used in) operating activities | $ | (995) | $ | 361 | ||
Cash flows provided by (used in) investing activities | 5,204 | (604) | ||||
Cash flows provided by (used in) financing activities | (3,496) | 644 | ||||
Cash flows from the historical aerospace reportable segment are presented within each cash flow statement category in the consolidated statements of cash flows. Depreciation and amortization, capital expenditures and significant operating and investing noncash items of the aerospace discontinued operation are presented in Note 4.
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Cash flows used in operating activities were $995 million in 2024, primarily driven by the company’s decision to reduce its use of accounts receivable factoring by $749 million as a result of having significant cash on hand from the aerospace sale. On February 16, 2024, the company completed the divestiture of the aerospace business. We currently estimate a cash tax of $1.00 billion to be recorded as a cash outflow from operations in 2024, of which $461 million has been paid as of June 30, 2024. See Note 4 for further details. In an elevated interest rate environment, payment terms with our customers and vendors become a more important element of total mix of information used to negotiate our contract terms. At June 30, 2024, days sales outstanding, net of factored receivables, was 82 days; therefore, a change of one day in days sales outstanding will impact cash flows provided by (used in) operating activities by $33 million. At June 30, 2024, days payable outstanding was 117 days; therefore, a change of one day in days payable outstanding will impact cash flows provided by (used in) operating activities by $26 million. At June 30, 2024, days inventory outstanding was 54 days; therefore, a change of one day in days inventory outstanding will impact cash flows provided by (used in) operating activities by $26 million.
Cash flows provided by investing activities were $5.20 billion in 2024, primarily driven by the initial cash proceeds received at close from the sale of the aerospace business of $5.42 billion, which is subject to further customary closing adjustments.
Cash flows used in financing activities were $3.50 billion in 2024, primarily driven by net repayments of long-term borrowings of $2.83 billion and repurchases of common stock of $665 million. See Note 15 for further details on the company’s borrowings, and additional amounts available.
We have entered into several regional committed and uncommitted accounts receivable factoring programs with various financial institutions for certain of our accounts receivable. The programs are accounted for as true sales of the receivables, with limited recourse to Ball, and had combined limits of approximately $1.59 billion and $2.00 billion at June 30, 2024 and December 31, 2023, respectively. A total of $690 million and $350 million were available for sale under these programs as of June 30, 2024, and December 31, 2023, respectively. The combined limit and available for sale amount as of December 31, 2023, included $160 million and $97 million, respectively, associated with receivable factoring programs included within the historical aerospace reportable segment. The company has recorded expense related to its factoring programs of $10 million and $25 million for the three months ended June 30, 2024 and 2023, respectively, and $23 million and $40 million for the six months ended June 30, 2024 and 2023, respectively, and has presented these amounts in selling, general and administrative in its unaudited condensed consolidated statements of earnings.
The company has several regional supplier finance programs with various financial institutions that act as the paying agent for certain payables of the company. The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's programs was $515 million and $703 million at June 30, 2024 and December 31, 2023, respectively. Our payment terms are not dependent on whether the suppliers participate in the supplier finance programs or if the suppliers decide to factor their receivables with the financial institutions; therefore, we do not believe that future changes in the availability of supplier finance programs will have a significant impact on our liquidity.
Contributions to the company’s defined benefit pension plans were $15 million in the first six months of 2024 compared to $9 million in the same period of 2023, and such contributions are expected to be approximately $28 million for the full year of 2024. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors.
The company expects that 2024 capital expenditures for property, plant and equipment will likely be in the range of $650 million. Approximately $186 million of capital expenditures for property, plant and equipment were contractually committed as of June 30, 2024, and the company intends to return approximately $245 million to shareholders in the form of dividends for the full year 2024, inclusive of the cash dividend of 20 cents per share, payable September 17, 2024, to shareholders of record as of September 3, 2024.
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As of June 30, 2024, approximately $675 million of our cash was held outside of the U.S. In the event that we would need to utilize any of the cash held outside of the U.S. for purposes within the U.S., there are no material legal or other economic restrictions regarding the repatriation of cash from any of the countries outside the U.S. where we have cash. The company believes its U.S. operating cash flows and cash on hand, as well as availability under its long-term, revolving credit facilities, uncommitted short-term credit facilities and committed and uncommitted accounts receivable factoring programs, will be sufficient to meet the cash requirements of the U.S. portion of our ongoing operations, scheduled principal and interest payments on U.S. debt, dividend payments, capital expenditures and other U.S. cash requirements. If non-U.S. funds are needed for our U.S. cash requirements and we are unable to provide the funds through intercompany financing arrangements, we may be required to repatriate funds from non-U.S. locations where the company has previously asserted indefinite reinvestment of funds outside the U.S.
Based on its indefinite reinvestment assertion, the company has not provided deferred taxes on earnings in certain non-U.S. subsidiaries because such earnings are intended to be indefinitely reinvested in its international operations. It is not practical to estimate the additional taxes that might become payable if these earnings were remitted to the U.S.
Share Repurchases
The company’s share repurchases totaled $665 million during the six months ended June 30, 2024, compared to $3 million of repurchases during the same period of 2023. The repurchases were completed using cash on hand, cash provided by operating activities, proceeds from the sale of businesses and available borrowings. The company plans to continue capital return to shareholders via an estimated $1.4 billion in share repurchases in 2024 using cash from the aerospace divestiture and operating activities.
On April 24, 2024, Ball’s Board of Directors approved the repurchase by the company of up to a total of 40 million shares of its common stock. This repurchase authorization replaced all previous authorizations.
Debt Facilities and Refinancing
Given our cash flow projections and unused credit facilities that are available until June 2027, our liquidity is strong and is expected to meet our ongoing cash and debt service requirements. Total interest-bearing debt of $5.83 billion and $8.62 billion was outstanding at June 30, 2024, and December 31, 2023, respectively.
On February 14, 2024, Ball announced a public tender of the $1.00 billion 5.25% senior notes due July 2025 and the $750 million 4.875% senior notes due March 2026. On March 14, 2024, $811 million of the $1.00 billion 5.25% senior notes and $494 million of the $750 million 4.875% senior notes were validly tendered and accepted. Additionally, in the first quarter of 2024, Ball repaid at maturity the outstanding 0.875% euro denominated senior notes due in the amount of $817 million and prepaid $700 million of the Term A loan outstanding balance.
The company’s senior credit facilities include a $1.35 billion term loan and long-term, multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $1.75 billion. At June 30, 2024, approximately $1.69 billion was available under the company’s long-term, multi-currency committed revolving credit facilities. In addition to these facilities, the company had $250 million of committed short-term loans outstanding. The company also had approximately $1.00 billion of short-term uncommitted credit facilities available at June 30, 2024, of which $24 million was outstanding and due on demand. At December 31, 2023, the company had $196 million of committed short-term loans outstanding and $13 million outstanding under short-term uncommitted credit facilities.
While ongoing financial and economic conditions in certain areas may raise concerns about credit risk with counterparties to derivative transactions, the company mitigates its exposure by allocating the risk among various counterparties and limiting exposure to any one party. We also monitor the credit ratings of our suppliers, customers, lenders and counterparties on a regular basis.
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We were in compliance with the leverage ratio requirement at June 30, 2024, and for all prior periods presented, and have met all debt payment obligations. The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividends, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of our debt covenants requires us to maintain a leverage ratio (as defined) of no greater than 5.0 times, which will change to 4.5 times as of September 30, 2025. As of June 30, 2024, the company could borrow an additional $2.34 billion under its long-term multi-currency committed revolving facilities and short-term uncommitted credit facilities. Additional details about our debt are available in Note 15 accompanying the consolidated financial statements within Item 1 of this report. In July 2024, we entered into and designated two net investment hedges against the net assets of our euro denominated operations. See Note 20 for further details.
Argentina
See Note 1 for information relevant to economic and other government policies that may have an impact on the financial condition, liquidity and capital resources of the company’s Argentina operations.
Defined Benefit Pension Plans
In November 2023, the Trustee Board of the U.K. defined benefit pension plan entered into an agreement with an insurance company for a bulk annuity purchase, or “buy-in,” for its U.K. defined benefit pension plan to reduce retirement plan risk, while delivering promised benefits to plan participants. The plan was frozen on April 5, 2024. See Note 17 for further details.
CONTINGENCIES, INDEMNIFICATIONS AND GUARANTEES
Details of the company’s contingencies, legal proceedings, indemnifications and guarantees are available in Note 21 and Note 22 accompanying the consolidated financial statements within Item 1 of this report. The company is routinely subject to litigation incidental to operating its businesses and has been designated by various federal, state, and international environmental agencies as a potentially responsible party, along with numerous other companies, for the clean-up of several hazardous waste sites. The company believes the matters identified will not have a material adverse effect upon its liquidity, results of operations or financial condition.
Guaranteed Securities
The company’s senior notes are guaranteed on a full and unconditional, joint and several basis by the issuer of the company’s senior notes and the subsidiaries that guarantee the notes (the obligor group). The entities that comprise the obligor group are 100 percent owned by the company. As described in the supplemental indentures governing the company’s existing senior notes, the senior notes are guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company.
The following summarized financial information relates to the obligor group as of June 30, 2024, and December 31, 2023. Intercompany transactions, equity investments and other intercompany activity between obligor group subsidiaries have been eliminated from the summarized financial information. Investments in subsidiaries not forming part of the obligor group have also been eliminated. The results and balance sheet information of the historical aerospace reportable segment are included in the following summarized financial information of the obligor group as of and for the year ended December 31, 2023, as the guarantees of the aerospace business legal entities were in effect through that date. On February 16, 2024, the company completed the divestiture of the aerospace business. As such, the following summarized financial information of the obligor group as of and for the six months ended June 30, 2024, does not include results and balance sheet information of the historical aerospace reportable segment.
36
Six Months Ended | Year Ended | |||||
($ in millions) | June 30, 2024 |
| December 31, 2023 | |||
Net sales | $ | 3,438 | $ | 8,962 | ||
Gross profit (a) | 428 | 1,074 | ||||
Net earnings | 3,753 | 493 | ||||
Net earnings attributable to Ball Corporation | 3,753 | 493 | ||||
| (a) | Gross profit is shown after depreciation and amortization related to cost of sales of $95 million for the six months ended June 30, 2024, and $272 million for the year ended December 31, 2023. |
For the six months ended June 30, 2024, and the year ended December 31, 2023, the obligor group recorded the following transactions with other subsidiary companies: sales to them of $650 million and $1.13 billion, respectively, net credits from them of $38 million and net interest income from them of $167 million and $344 million, respectively. The obligor group received dividends from other subsidiary companies of $38 million and $814 million, during the six months ended June 30, 2024, and the year ended December 31, 2023, respectively.
June 30, | December 31, | |||||
($ in millions) |
| 2024 |
| 2023 | ||
Current assets | $ | 2,880 | $ | 2,339 | ||
Noncurrent assets | 15,211 | 15,955 | ||||
Current liabilities | 4,066 | 5,163 | ||||
Noncurrent liabilities | 8,545 | 10,857 | ||||
Included in the amounts disclosed in the table above, at June 30, 2024, and December 31, 2023, the obligor group held receivables due from other subsidiary companies of $487 million and $768 million, respectively, long-term notes receivable due from other subsidiary companies of $10.37 billion and $10.20 billion, respectively, payables due to other subsidiary companies of $1.80 billion and $1.83 billion, respectively, and long-term notes payable due to other subsidiary companies of $2.14 billion and $2.32 billion, respectively.
A description of the terms and conditions of the company’s debt guarantees is located in Note 22 of Item 1 of this report.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The company employs established risk management policies and procedures which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance 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. Further details are available in Item 7A within Ball’s 2023 Annual Report on Form 10-K filed on February 20, 2024, and in Note 20 accompanying the consolidated financial statements included within Item 1 of this report.
Item 4. CONTROLS AND PROCEDURES
Our chief executive officer and chief financial officer participated in management’s evaluation of our disclosure controls and procedures, as defined by the Securities and Exchange Commission (SEC), as of the end of the period covered by this report and concluded that our controls and procedures were effective. There were no changes to internal controls during the company’s second quarter of 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
37
FORWARD-LOOKING STATEMENTS
This report contains “forward-looking” statements concerning future events and financial performance. Words such as “expects,” “anticipates,” “estimates,” “believes,” and similar expressions typically identify forward looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements, and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in Ball’s Form 10-K, which are available on Ball’s website and at www.sec.gov. Additional factors that might affect: a) Ball’s packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; footprint adjustments and other manufacturing changes, including the startup of new facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on Ball’s supply chain and its ability to operate in Europe, the Middle East and Africa regions generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and orders affecting goods produced by Ball or in its supply chain, including imported raw materials; and b) Ball as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, environmental, social and governance reporting, competition, environmental, health and workplace safety, including U.S. Federal Drug Administration and other actions or public concerns affecting products filled in Ball’s containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of Ball’s defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies, including policies, orders, and actions related to COVID-19; reduced cash flow; interest rates affecting Ball’s debt; successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball’s operating results and business generally.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There were no events required to be reported under Item 1 for the three months ended June 30, 2024, except as discussed in Note 21 to the consolidated financial statements included within Part I, Item 1 of this report.
38
Item 1A. Risk Factors
There were no changes required to be reported under Item 1A for the three months ended June 30, 2024; however, upon the sale of the aerospace business on February 16, 2024, the risk factors related to the aerospace business are no longer relevant.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table summarizes the company’s repurchases of its common stock during the second quarter of 2024.
Purchases of Securities | |||||||||
($ in millions) |
| Total Number of Shares Purchased (a) |
| Average Price Paid per Share |
| Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) |
| Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (b) | |
April 1 to April 30, 2024 | 2,786,761 | $ | 66.62 | 2,786,761 | 39,690,000 | ||||
May 1 to May 31, 2024 | 1,820,052 | 69.59 | 1,820,052 | 37,869,948 | |||||
June 1 to June 30, 2024 | 2,642,861 | 65.09 | 2,642,861 | 35,227,087 | |||||
Total | 7,249,674 | 7,249,674 | |||||||
| (a) | Includes any open market purchases (on a trade-date basis), share repurchase agreements and/or shares retained by the company to settle employee withholding tax liabilities. |
| (b) | The company has an ongoing repurchase program for which shares are authorized from time to time by Ball’s Board of Directors. On April 24, 2024, the Board authorized the repurchase by the company of up to a total of 40 million shares. This repurchase authorization replaced all previous authorizations. |
Item 3. Defaults Upon Senior Securities
There were no events required to be reported under Item 3 for the three months ended June 30, 2024.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
There were
39
Item 6. Exhibits
2.1 | ||
22 | ||
31.1 |
| |
31.2 | ||
32.1 | ||
32.2 | ||
99 | ||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definitions Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The cover page of the company’s quarterly report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (contained in Exhibit 101), the: (i) Unaudited Condensed Consolidated Statement of Earnings, (ii) Unaudited Condensed Statement of Comprehensive Earnings (Loss), (iii) Unaudited Condensed Consolidated Balance Sheet, (iv) Unaudited Condensed Consolidated Statement of Cash Flows and (v) Notes to the Unaudited Condensed Consolidated Financial Statements. |
40
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Ball Corporation | ||
(Registrant) | ||
By: | /s/ Howard H. Yu | |
Howard H. Yu | ||
Executive Vice President and Chief Financial Officer | ||
Date: | August 1, 2024 | |
41
Article I
DEFINITIONS
1.1Definitions1
Article II
THE TRANSACTIONS
2.1Sale and Purchase of the Shares18
2.2Purchase Price18
2.3Closing Purchase Price18
2.4Post-Closing Adjustment19
2.5Withholding22
Article III
CLOSING AND CLOSING DELIVERIES
3.1Closing; Time and Place23
3.2Deliveries by Seller23
3.3Deliveries by Purchaser24
3.4Payment Mechanics24
Article IV
REPRESENTATIONS AND WARRANTIES OF SELLER
4.1Authority; Enforceability24
4.2Non-Contravention; Consents25
4.3Organization; Acquired Companies25
4.4Title; Shares26
4.5Financial Information; Liabilities27
4.6Absence of Certain Changes28
4.7Compliance with Legal Requirements29
4.8Material Contracts29
4.9Litigation32
4.10Insurance32
4.11Intellectual Property32
4.12Real Property34
4.13Labor Matters35
4.14Employee Benefits36
4.15Taxes38
4.16Sufficiency of Assets39
4.17Environmental Matters39
4.18Certain Business Practices40
4.19Government Contracts41
4.20Brokers42
4.21Related Party Transactions42
4.22Intercompany Arrangements43
4.23Disclaimer of Seller43
4.24No Other Representations44
Article V
REPRESENTATIONS AND WARRANTIES OF PURCHASER
5.1Authority; Enforceability45
5.2Non-Contravention; Consents46
5.3Organization46
5.4Litigation46
5.5Sufficiency of Funds46
5.6Solvency47
5.7Brokers47
5.8Pending Transactions47
5.9NTIB Entity47
5.10ITAR47
5.11Inspection; No Other Representations47
5.12Disclaimer of Purchaser49
Article VI
COVENANTS OF THE PARTIES
6.1Conduct of the Business Prior to the Closing49
6.2Pre-Closing Access to Information55
6.3Cooperation56
6.4Shared Contracts and Consents56
6.5Termination of Intercompany Agreements; Release of Guarantees58
6.6Seller Debt Facilities Releases60
6.7Confidentiality60
6.8Reasonable Best Efforts; Cooperation; Regulatory Filings61
6.9Financing65
6.10Financing Cooperation65
6.11Insurance68
6.12R&W Insurance Policy69
6.13Litigation Support70
6.14Registered Office Addresses71
6.15Segregation of Email and Messaging Accounts71
6.16DDTC 60-Day71
6.17Resignations72
6.18Pre-Closing Reorganization72
Article VII
ADDITIONAL COVENANTS OF THE PARTIES
7.1Transitional Trademark Rights73
7.2Closing and Post-Closing Access to Information75
7.3D&O Indemnification76
7.4Non-Solicit78
7.5Further Assurances; Wrong Pockets78
7.6Notifications80
Article VIII
TAX MATTERS
8.1Section 338(h)(10) Elections80
8.2Tax Returns; Allocation of Taxes81
8.3Prohibited Actions83
8.4Consolidated Returns and Purchaser Consolidated Returns; Tax Proceedings83
8.5Tax Matters Cooperation83
8.6Transfer Taxes84
8.7Indemnified Taxes84
8.8Deferred Revenue84
8.9Survival84
Article IX
EMPLOYEES
9.1Transferred Employees85
9.2Continuation Period85
9.3Seller Benefit Plan Participation; M&A Qualified Beneficiaries; Certain Benefits for Transferred Employees86
9.4Qualified Retirement Plans87
9.5FSAs88
9.6Annual Cash Bonuses; Similar Benefits88
9.7Vacation and Paid Time Off88
9.8Communications89
9.9Seller Long-Term Incentive Awards89
9.10Deferred Compensation Plans89
9.11Employee Liabilities90
9.12No Third-Party Beneficiaries90
Article X
CONDITIONS TO THE CLOSING
10.1Conditions of Purchaser90
10.2Conditions of Seller91
10.3Mutual Conditions92
10.4Waiver of Conditions92
Article XI
TERMINATION
11.1Termination93
11.2Notice of Termination94
11.3Effect of Termination94
11.4Purchaser Termination Fee94
Article XII
MISCELLANEOUS PROVISIONS
12.1Expenses96
12.2Survival96
12.3Interpretation96
12.4Entire Agreement97
12.5Amendment and Waivers97
12.6Successors and Assigns98
12.7Governing Law98
12.8Jurisdiction; Venue; Service of Process98
12.9Waiver of Jury Trial99
12.10Specific Performance99
12.11Severability100
12.12Certain Releases100
12.13The Seller Disclosure Schedule, Schedules, Annexes and Exhibits103
12.14Notices103
12.15No Third-Party Beneficiaries104
12.16Provision Regarding Legal Representation104
12.17No Other Duties105
12.18Reliance on Counsel and Other Advisors105
12.19Public Announcements105
12.20Counterparts106
12.21Purchaser Guarantor106
This Stock Purchase Agreement is dated as of August 16, 2023, by and among BAE Systems, Inc., a Delaware corporation (“Purchaser”), Ball Corporation, an Indiana corporation (“Seller”) and, solely for purposes of Section 12.21 hereof, BAE Systems plc, a United Kingdom public limited company (“Purchaser Guarantor”). The capitalized terms used in this Agreement are defined in Article I, unless otherwise defined herein.
WHEREAS, Seller owns 100% of the issued and outstanding shares of capital stock of Ball Technologies Holdings Corp., a Colorado corporation (the “Company”);
WHEREAS, Seller desires to sell, transfer, convey, assign and deliver to Purchaser (or one or more Purchaser Designees), and Purchaser desires to (and to cause any Purchaser Designee, as applicable, to) purchase from Seller, all of Seller’s rights, title and interest in and to all of the issued and outstanding shares of capital stock of the Company (the “Shares”), subject to the terms and the conditions set forth in this Agreement;
WHEREAS, Seller will, and will cause its Controlled Affiliates to, and Purchaser will, and will cause any Purchaser Designee and Purchaser’s Controlled Affiliates to, at or prior to the Closing, execute and deliver each of the other Transaction Agreements to which they are a party; and
WHEREAS, the parties desire to make certain representations, warranties, covenants and agreements in connection with this Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual representations, warranties, covenants and promises contained herein and other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties agree as follows:
evidence that would reduce or eliminate such withholding Tax under Legal Requirements. Purchaser shall cooperate with Seller, upon Seller’s reasonable request, to reduce or eliminate any such withholding Tax in a manner consistent with applicable Legal Requirements. To the extent any amounts are deducted and withheld by Purchaser or any other applicable withholding agent under this Section 2.5 and paid over to the applicable Governmental Authority in accordance with the applicable Legal Requirements, such amounts shall be treated for purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.
Except as set forth in the Seller Disclosure Schedule, Seller hereby represents and warrants to Purchaser as follows:
Company (nor, with respect to the Business, Seller or any of its other Controlled Affiliates) has received any written notice, report, order, or directive and there are no Proceedings pending or, to Seller’s Knowledge, threatened, against the Business, in each case alleging that the Business or any Acquired Company (or, with respect to the Business, Seller or any of its other Controlled Affiliates) is in violation of or liable under any Environmental Law, excluding any such notices, reports, orders, directives or Proceedings that have been fully and finally resolved with no further liability or obligation and (c) neither the Business nor the Acquired Companies nor, to Seller’s Knowledge, any other Person, to the extent reasonably expected to result in material liability of any Acquired Company (nor, with respect to the Business, Seller or any of its other Controlled Affiliates) has treated, stored, disposed of, arranged for the disposal of, transported, manufactured, distributed, released, or exposed any Person to, and none of the facilities or real properties currently or formerly owned or operated by the Business or any Acquired Company (or, with respect to the Business, Seller or any of its other Controlled Affiliates) is or has been impacted by the release or disposal of, Hazardous Materials, in each case, as would be reasonably likely to give rise to any liabilities pursuant to any Environmental Laws.
connection with, employment and benefits provided to employees and other individual service providers in the ordinary course of business consistent with past practice, no officer, director, manager or employee of Seller or its Controlled Affiliates (including the Acquired Companies): (a) has entered into any financial transaction with or is a party to any Contract with any Acquired Company; (b) has any right, title, or interest in or to, or uses, holds for use, or licenses, any of the material assets or properties used in the Business, whether tangible or intangible (including any Intellectual Property, but excluding the Seller Transitional Trademarks); or (c) provides or causes to be provided to the Business any of the material assets, properties, services or facilities used in the Business (other than those that will continue to be provided under the Transition Services Agreement), in each case of (a), (b) and (c) that is material to the Business.
memorandum or ANY MANAGEMENT PRESENTATIONS OR IN ANY OTHER FORM), including with respect to any errors therein or omissions therefrom, OR AS TO THE FUTURE REVENUE, PROFITABILITY OR SUCCESS OF Seller, ITS AFFILIATES (INCLUDING the Acquired Companies) or the Business (including the financial information, projections or other forward-looking statements of Seller, ITS AFFILIATES (INCLUDING the Acquired Companies) or the Business, in each case, in expectation or furtherance of the Transactions), AND SELLER HEREBY DISCLAIMS AND SHALL HAVE NO LIABILITY FOR ANY AND ALL SUCH REPRESENTATIONS OR WARRANTIES NOT EXPRESSLY SET FORTH IN THIS Article IV (AND, AS OF THE CLOSING, THE CERTIFICATE TO BE DELIVERED PURSUANT TO SECTION 10.1(c) WITH RESPECT TO REPRESENTATIONS AND WARRANTIES). WITHOUT LIMITING THE REPRESENTATIONS OR WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE IV (AND, AS OF THE CLOSING, THE CERTIFICATE TO BE DELIVERED PURSUANT TO SECTION 10.1(c) WITH RESPECT TO REPRESENTATIONS AND WARRANTIES), Seller further specifically disclaims any statement, representation or warranty of merchantability, usage, suitability or fitness for any particular purpose with respect to assets of the Business, any part thereof, the workmanship thereof, and the absence of any defects therein, whether latent or patent, it being understood that such assets are being acquired “as is, where is” on the Closing Date, and in their present condition. this SECTION 4.23 shall not limit any right or remedy of Purchaser with respect to any claim for Fraud, under the R&W Insurance policy or in connection with any REPRESENTAtion or warranty set forth in any other transaction agreement delivered at the closing.
Purchaser hereby represents and warrants to Seller as follows:
borrowing notice) to (a) satisfy all of Purchaser’s obligations under this Agreement, including its obligations under Article II, (b) pay any other amounts required to be paid by Purchaser in connection with the consummation of the Transactions and (c) pay all related fees and expenses of Purchaser.
the insurer shall irrevocably waive and not pursue, directly or indirectly, any claims against Seller or any of its Affiliates or Representatives (by way of subrogation, claim for contribution or otherwise) in connection with this Agreement and the Transactions, other than in the case of Fraud and then only to the extent of such Fraud and (b) Seller and its Affiliates or Representatives shall be express third-party beneficiaries of such provision. Purchaser shall not (and shall cause its Affiliates not to) amend or modify in any material respect that is adverse to Seller and its Affiliates or Representatives, or otherwise novate, assign, waive or terminate, in each case the provisions in clauses (a) and (b) of the immediately preceding sentence without the prior written consent of Seller, which consent shall be in Seller’s sole discretion. Purchaser shall be solely responsible for all costs to procure, maintain and make claims under the R&W Insurance Policy, including all premiums, broker fees, underwriting fees, retentions, Taxes, expenses and costs of any nature whatsoever. Purchaser acknowledges and agrees that the absence of coverage under the R&W Insurance Policy for any reason, including the insolvency of, or breach of any R&W Insurance Policy by, any insurer thereunder, the failure of Purchaser to file notices or claims that are timely and sufficient under any R&W Insurance Policy, or the failure by any insurer under any R&W Insurance Policy to make any payments to Purchaser under such R&W Insurance Policy, or to deny coverage, for any reason, under such R&W Insurance Policy shall not expand, alter, amend, change or otherwise affect Seller’s liability under this Agreement.
submission of any such notice(s), including the provision of any such information necessary for submission of the notice(s) required by Section 122.4(b) of the ITAR, as well as any other filings required under the ITAR.
in the waiver of any legal privilege or work-product protection. Purchaser shall cause the Acquired Companies to retain all books and records with respect to Tax matters pertinent to the Acquired Companies related to any taxable period beginning before the Closing Date until the expiration of the applicable statute of limitations, and to abide by all record retention agreements entered into with any Tax Authority. Subject to the limitations described in clauses (ii) and (iii) above, Purchaser shall cause the Acquired Companies to furnish, at Seller’s sole cost and expense and in the ordinary course of business of the Acquired Companies, any Tax information related to a Consolidated Return reasonably requested by Seller for any taxable period of the Acquired Companies that includes the Closing Date; provided, that Seller shall not be required to reimburse Purchaser for any costs or expenses pursuant to this paragraph that are not reasonable and documented out-of-pocket costs or expenses.
applicable health and life insurance plans, health and life insurance benefits to eligible Transferred Employees who are receiving salary replacement benefits under Seller’s long-term disability insurance policy for the same duration as such health and life insurance benefits would have been provided to such Transferred Employee under the terms of the applicable Seller Benefit Plans (“Assumed Disability Health Benefits”).
such Transferred Employee had with any Acquired Company, Seller or any of its Controlled Affiliates, as applicable, as of immediately prior to the Closing Date to the extent such amounts are reflected in Net Working Capital and (b) permit each Transferred Employee to use such accrued but unused vacation time, paid time off and other time-off benefits in the same manner and upon the same terms and conditions as the Transferred Employee would have been so permitted under the terms and conditions of the applicable policies of any Acquired Company, Seller or any of its Controlled Affiliates, as applicable, in effect for the year in which such Closing Date occurs.
to time (unless otherwise expressly provided), (d) words in the singular or plural form include the plural and singular form, respectively, and words of one gender shall be held to include the other gender as the context requires, (e) references to the parties or a party means the parties hereto or a party hereto, respectively, unless another agreement is specified, (f) references to a particular Person include such Person’s successors and assigns to the extent not prohibited by this Agreement, (g) “extent” in the phrase “to the extent” means the degree to which a subject or other thing extends, and such phrase does not mean simply “if,” (h) the headings contained in this Agreement, in any schedule, annex or exhibit hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement, (i) references to “$” shall mean United States dollars, (j) the word “or” is not exclusive, and shall be read to mean “and/or”, (k) the words “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words refer to this entire Agreement, including the schedules, annexes and exhibits hereto, (l) the word “any” means “any and all,” (m) the words “writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form, (n) if the last day of the time period for the giving of any notice or the taking of any action required under this Agreement falls on a day that is not a Business Day, the time period for giving such notice or taking such action shall be extended through the next Business Day following the original expiration date of such, (o) unless otherwise specified, the words “made available to,” “delivered to,” “provided to” or “furnished to” Purchaser (or words of similar import) means such documents have been posted to, or provided in, the Data Room and made accessible to Purchaser or one or more of its Representatives at least one (1) hour prior to the execution and delivery of this Agreement, (p) Seller and Purchaser have each participated in the negotiation and drafting of this Agreement and the other Transaction Agreements and if an ambiguity or question of interpretation should arise, this Agreement and the other Transaction Agreements shall be construed as if drafted jointly by the parties thereto and no presumption or burden of proof shall arise favoring or burdening either party by virtue of the authorship of any of the provisions in this Agreement or the other Transaction Agreements and (q) any accounting term not specifically defined within the Agreement shall have the meaning ascribed to such term set forth under GAAP.
manner that is adverse to a Debt Financing Source, without the prior written consent of such Debt Financing Source (not to be unreasonably withheld, conditioned or delayed).
To Purchaser at:
BAE Systems, Inc.
1101 Wilson Blvd, Suite 2000
Arlington, VA 22209
Attention: SVP, General Counsel and Corporate Secretary
VP and Associate General Counsel
Email: alice.eldridge@baesystems.com
katherine.h.brown@baesystems.com
With copies (which shall not constitute notice) to:
Kirkland & Ellis LLP
601 Lexington Avenue
New York, NY 10022
Attention:Sarkis Jebejian, P.C.
Edward J. Lee, P.C.
Steven Y. Li
Email:sarkis.jebejian@kirkland.com
edward.lee@kirkland.com
steven.li@kirkland.com
To Seller at:
Ball Corporation
9200 W. 108th Circle
Westminster, Colorado 80021
Attention: General Counsel
Associate General Counsel
Email: CBaker@ball.com
Kate.Kimball@ball.com
With copies (which shall not constitute notice) to:
Skadden, Arps, Slate, Meagher & Flom LLP
155 North Wacker Drive
Chicago, Illinois 60606
Attention: Shilpi Gupta and David R. Clark
Email: Shilpi.Gupta@skadden.com;
David.Clark@skadden.com
and that neither Skadden nor Axinn has acted as counsel for any other party in connection with such Transactions. The parties agree that, in the event that a dispute arises after the Closings between Seller or its Affiliates, on the one hand, and Purchaser, any Acquired Company or their respective Affiliates, on the other hand, Skadden or Axinn (or both) may represent Seller and its Affiliates in such dispute even though the interests of Seller and its Affiliates may be directly adverse to Purchaser, the Acquired Companies or their respective Affiliates, and even though Skadden or Axinn may have represented any of the Acquired Companies or any of their Affiliates in a matter substantially related to such dispute prior to the Closing or may be handling ongoing matters for Purchaser, any Acquired Company or any of their respective Affiliates. Purchaser further agrees that all communications among Seller, the Acquired Companies or any of their respective Affiliates (in the case of the Acquired Companies and their Affiliates, solely prior to the Closing), on the one hand, and their counsel, including in-house counsel, Skadden and Axinn, on the other hand, that relate in any way to the Transactions shall be deemed attorney-client privileged communications (collectively, the “Privileged Communications”) and the attorney-client privilege and the expectation of client confidence belongs to Seller and may be controlled by Seller and, notwithstanding anything to the contrary contained in this Agreement, shall not pass to or be claimed by Purchaser, any Acquired Company or any of their Affiliates. The Privileged Communications are (and upon the Closing shall remain) the property of Seller. As to any such Privileged Communications made prior to the Closing Date, Purchaser, together with its Affiliates (including the Acquired Companies), successors and assigns, further agrees that no such party may access, obtain, use or rely on any of the Privileged Communications for any purpose without a waiver of the attorney-client privilege, which waiver shall be in Seller’s sole discretion. The Privileged Communications may be used by Seller in connection with any dispute that relates in any way to the Transactions. Notwithstanding the foregoing, in the event that a dispute arises between Purchaser, any Acquired Company or any of their respective Affiliates, on the one hand, and any other Person or Persons (other than a party to this Agreement or any of its respective Affiliates), on the other hand, after the Closing, such Acquired Company and its Affiliates may assert the attorney-client privilege to prevent disclosure of the Privileged Communications to such Person or Persons; provided, however, that none of the Acquired Companies nor their Affiliates may waive such privilege without the prior written consent of Seller.
shall use reasonable efforts to provide the other party a reasonable opportunity to comment on such press release, public announcement or other public communication in advance of such publication; provided that the foregoing will not restrict or prohibit Purchaser or Seller from making any announcement in compliance with the terms and conditions of this Agreement to its respective employees, customers and other business relations (in each case, in their capacities as such) to the extent that such party reasonably determines in good faith that such announcement is necessary or advisable, but only to the extent the content of which is consistent with that of any prior public announcement made in compliance with this Section 12.19 or (b) to the extent the contents of such press release, public announcement or other public communication or filing have previously been released publicly by a party or are consistent in all material respects with materials or disclosures that have previously been released publicly, in each case, without violation of this Section 12.19. Notwithstanding the foregoing, this Section 12.19 shall not apply to the disclosure of the express terms of this Agreement in any public filings required by Legal Requirement, stock exchange rules, U.K. listed company rules or SEC (or applicable foreign securities laws) filing requirements.
[Signature pages follow.]
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first written above.
By:/s/Alice M. Eldridge
Name: Alice M. Eldridge
Title: SVP, General Counsel
By:/s/ Charles E. Baker
Name: Charles E. Baker
Title: Vice President & Corporate Secretary
BAE SYSTEMS PLC, solely for purposes of Section 12.21
By:/s/ David Parkes
Name: David Parkes
Title: Company Secretary
The following list identifies contents of schedules and similar attachments omitted from the copy of the Stock Purchase Agreement, dated as of August 16, 2023, by and among BAE Systems, Inc., Ball Corporation and, solely for purposes of Section 12.21 thereof, BAE Systems plc (the “Agreement”) contained in this Exhibit 2.1 pursuant to Item 601(a)(5) of Regulation S-K, other than those schedules and similar attachments as to which information is otherwise included within this Exhibit 2.1 in a manner that conveys the subject matter thereof (capitalized terms in this list have the respective meanings ascribed to them in the Agreement):
Annex A……………………………………………… | Certain Financial Definitions and Matters |
Annex B……………………………………………… | Real Estate Reorganization Plan |
Exhibit 22
OBLIGOR GROUP SUBSIDIARIES OF BALL CORPORATION
June 30, 2024
The following is a list of Obligor Group subsidiaries of Ball Corporation (an Indiana Corporation)
Name | State or Country of Incorporation or Organization | Percentage (2) Ownership Direct & Indirect |
| | |
|---|---|---|
Ball Advanced Aluminum Technologies Corp. (f/k/a Neuman USA Ltd.) | Delaware | 100% |
Ball Asia Services Limited | Delaware | 100% |
Ball Beverage Can Americas Inc. (f/k/a Rexam Beverage Can Americas Inc.) | Delaware | 100% |
Ball BP Holding Company (f/k/a Rexam BP Holding Company) | Delaware | 100% |
Ball Container LLC | Delaware | 100% |
Ball Corporation | Indiana | 100% |
Ball Glass Containers, Inc. | Delaware | 100% |
Ball Global Business Services Corp. | Delaware | 100% |
Ball Holdings LLC | Delaware | 100% |
Ball Inc. (f/k/a Rexam Inc.) | Delaware | 100% |
Ball Metal Beverage Container Corp. | Colorado | 100% |
Ball Metal Container Corporation | Indiana | 100% |
Ball Packaging, LLC (f/k/a Ball Packaging Corp., f/k/a Ball Packaging Holdings Corp.) | Colorado | 100% |
Ball Pan-European Holdings, LLC (f/k/a Ball Pan-European Holdings, Inc.) | Delaware | 100% |
Latas De Aluminio Ball, Inc. | Delaware | 100% |
Rexam Beverage Can Company | Delaware | 100% |
USC May Verpackungen Holding Inc. | Delaware | 100% |
Exhibit 31.1
Certification
I, Dan W. Fisher, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Ball Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 1, 2024 | |
| |
| /s/ Dan W. Fisher |
| Dan W. Fisher |
| Chairman and Chief Executive Officer |
1
Exhibit 31.2
Certification
I, Howard H. Yu, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Ball Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 1, 2024 | |
| |
| /s/ Howard H. Yu |
| Howard H. Yu |
| Executive Vice President and Chief Financial Officer |
1
Exhibit 32.1
Certification of Chief Executive Officer
Pursuant to 18 U.S.C. Section 1350
and Rule 13a-14(b) or Rule 15d-14(b)
My name is Dan W. Fisher and I am the Chairman and Chief Executive Officer of Ball Corporation (the “Company”).
I hereby certify pursuant to 18 U.S.C. Section 1350 as adopted by Section 906 of the Sarbanes—Oxley Act of 2002 that to the best of my knowledge and belief:
(1) the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the U.S. Securities and Exchange Commission on August 1, 2024 (“Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of Ball Corporation as of, and for, the periods presented in the Report.
/s/ Dan W. Fisher | |
Dan W. Fisher | |
Chairman and Chief Executive Officer | |
Ball Corporation | |
| |
Date: August 1, 2024 | |
This certification, which accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-K), irrespective of any general incorporation language contained in such filing.
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
1
Exhibit 32.2
Certification of Chief Financial Officer
Pursuant to 18 U.S.C. Section 1350
and Rule 13a-14(b) or Rule 15d-14(b)
My name is Howard H. Yu and I am the Executive Vice President and Chief Financial Officer of Ball Corporation (the “Company”).
I hereby certify pursuant to 18 U.S.C. Section 1350 as adopted by Section 906 of the Sarbanes—Oxley Act of 2002 that to the best of my knowledge and belief:
(1) the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the U.S. Securities and Exchange Commission on August 1, 2024 (“Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of Ball Corporation as of, and for, the periods presented in the Report.
/s/ Howard H. Yu | |
Howard H. Yu | |
Executive Vice President and Chief Financial Officer | |
Ball Corporation | |
| |
Date: August 1, 2024 | |
This certification, which accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-K), irrespective of any general incorporation language contained in such filing.
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
1
Exhibit 99
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the Reform Act), Ball is hereby filing cautionary statements identifying important factors that could cause Ball’s actual results to differ materially from those described in forward-looking statements made by or on behalf of Ball. Forward-looking statements may be made in several different contexts; for example, in the company’s Form 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission (“SEC”), quarterly and annual earnings news releases, quarterly earnings conference calls hosted by the company, public presentations at investor and credit conferences, the company’s Annual Report and in other periodic communications with investors. As time passes, the relevance and accuracy of forward-looking statements may change; however, except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult any further disclosures and cautionary statements Ball makes on related subjects in our Form 10-K, 10-Q and 8-K reports and other filings with the SEC. The Reform Act defines forward-looking statements as statements that express or imply an expectation or belief and contain a projection, plan or assumption with regard to, among other things, future revenues, income, earnings per share, cash flow or capital structure. Words such as “expects,” “anticipates,” “estimates,” “believes,” “targets,” “likely,” “foresees”, “positions” and similar expressions typically identify forward-looking statements, which are generally any statements other than statements of historical fact. These forward-looking statements are not guarantees of future performance, and you should therefore not place undue reliance upon such statements. Rather, these statements involve estimates, assumptions uncertainties and known and unknown risks, many of which are outside our control, and such statements are therefore qualified in their entirety by reference to the following important factors, among others (including those described in any “Risk Factors” section of our most current Form 10-K, 10-Q or other filings with the SEC), that could cause Ball’s actual results or performance to differ materially from those expressed or implied in forward-looking statements made by or on behalf of Ball:
● | Fluctuation in customer and consumer growth, spending, demand or preferences, and changes in consumption patterns, both on a seasonal basis and those that may be longer-term or structural in nature, including any effect on demand for our products as a result of the enactment of laws and programs aimed at discouraging the consumption or altering the package or portion size of certain of our customers’ products. |
| |
● | Customer, competitor or supplier consolidation and potential correspondent supply chain influence. |
| |
● | Loss of one or more major customers or suppliers or changes to contracts with one or more customers or suppliers. |
| |
● | Failure to achieve anticipated productivity improvements or cost reductions including those associated with capital expenditures; failure to achieve an appropriate or optimal level of maintenance and capital expenditures; and failure to achieve expectations with respect to expansion plans, accretion to reported earnings, working capital improvements and investment income or cash flow projections. |
| |
● | Changes in the environment and in climate, including the increasing frequency of severe weather events such as drought, wildfires, storms, hurricanes, tornadoes and floods; virus and disease outbreaks and responses thereto; acts of war, terrorism or other significant or catastrophic geopolitical events or natural disasters, or the catastrophic loss of one of our key manufacturing or operating facilities. |
| |
● | Financial risks, including inflation and changes in interest rates affecting our debt or our ability to comply with the terms of our debt instruments; changes in the hedging markets or our inability or failure to economically hedge or insure against certain risks or potential exposures; changes in international currency exchange rates of the currencies in the countries in which the company and its joint ventures carry on business; counterparty risk; liquidity risk; inflation or deflation; and changes in capital availability and our access to financing, including the risk of constraints on financing in the event of a credit rating downgrade. |
Page 1 of 3
| Exhibit 99 (continued) |
| |
● | Competition in each line of business, including with respect to pricing and the possible decrease in, or loss of, sales or margins resulting therefrom; product development and introductions by our competitors; and technology changes, including the effect on us of technological or product advances made by our competitors. |
| |
● | The ability or inability to achieve and protect technological and product extensions or new technological and product advances in the company’s businesses, including our ability to maintain, develop, and capitalize on competitive technologies for the design and manufacture of products and to withstand competitive and legal challenges to the proprietary nature of such technology (or protect any unpatented proprietary know-how and trade secrets). |
| |
● | Ball’s ability or inability adapt to fluctuating supply and demand and to have available sufficient production capacity, or have such capacity available in the right locations, in a timely manner, as well as footprint adjustments and other manufacturing changes. |
| |
● | Overcapacity or undercapacity of Ball or in the metal container industry generally, and its potential impact on costs, pricing and financial results. |
| |
● | Regulatory action or issues, or changes in federal, state, local or international laws, including those related to tax, environmental, health and workplace safety, including in respect of climate change, pollution, environmental, social and governance (ESG) reporting, greenhouse gas emissions, or chemicals or substances used in raw materials or in the manufacturing process, particularly concerning Bisphenol-A (BPA), a chemical used in the manufacture of epoxy coatings applied to many types of containers (including certain of those products produced by the company), as well as laws relating to recycling, unfavorable mandatory deposit or packaging legislation, or to the effects on health of ingredients or substances in, or attributes of, certain of our customers’ products. |
| |
● | The effect of any antitrust, intellectual property, consumer, employee or other litigation, investigations or governmental proceedings. |
| |
● | The extent to which sustainability-related opportunities arise and can be capitalized upon. |
| |
● | The availability and cost of raw materials, commodities, supplies, energy, logistics and natural resources needed for the production of metal containers, supply chain disruptions, widespread ocean and shipping constraints, and our ability or inability to pass on to customers changes in freight and raw material costs, particularly aluminum. |
| |
● | Changes in senior management; strikes and other labor issues; increases and trends in various employee benefits and labor costs, including pension, medical and health care costs incurred in the countries in which Ball has operations; the ability to attract and retain skilled labor; rates of return projected and earned on assets and discount rates used to measure future obligations and expenses of the company’s defined benefit retirement plans; and changes in the company’s pension plans. |
| |
● | International business and market risks and economic conditions; political and economic instability in various markets, including periodic sell-offs on global or regional debt or equity markets; restrictive trade practices of national governments; the imposition of duties, trade actions, taxes or other government charges by national governments; exchange controls; trade sanctions; and ongoing uncertainties and other effects surrounding geopolitical events and governmental policies and actions, both in the U.S. and in other countries. |
Page 2 of 3
| Exhibit 99 (continued) |
| |
● | Undertaking successful or unsuccessful acquisitions, divestitures, joint ventures or strategic realignments; and the effect of acquisitions, divestitures, joint ventures or strategic realignments on our business relationships, operating results and business generally. |
| |
● | The company’s ability to protect its information technology network, systems and data and those of its customers and suppliers from attacks or catastrophic failure, and the strength of the company’s cyber-security. |
| |
● | The timing and extent of regulation or deregulation, or changes to regulations and standards, including changes in generally accepted accounting principles or their interpretation. |
| |
● | Changes to unaudited results due to statutory audits of our financial statements or management’s evaluation of the company’s internal controls over financial reporting. |
| |
● | Loss contingencies related to income and other tax matters, including those arising from audits performed by national and local tax authorities. |
| |
| |
Page 3 of 3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) | ||||
| Net earnings | $ 159 | $ 173 | $ 3,845 | $ 353 |
| Other comprehensive earnings (loss): | ||||
| Currency translation adjustment | (52) | 38 | (139) | 58 |
| Pension and other postretirement benefits | 7 | 8 | 148 | 9 |
| Derivatives designated as hedges | 25 | 15 | 33 | 44 |
| Total other comprehensive earnings (loss) | (20) | 61 | 42 | 111 |
| Income tax (provision) benefit | (8) | (6) | (47) | (14) |
| Total other comprehensive earnings (loss), net of tax | (28) | 55 | (5) | 97 |
| Total comprehensive earnings | 131 | 228 | 3,840 | 450 |
| Comprehensive earnings attributable to noncontrolling interests | 1 | 2 | 3 | |
| Comprehensive earnings attributable to Ball Corporation | $ 130 | $ 228 | $ 3,838 | $ 447 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| Common stock, shares issued | 683,801,066 | 683,241,401 |
| Treasury stock, at cost | 377,841,387 | 367,551,366 |
Basis of Presentation |
6 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||
| Basis of Presentation | |||||||||||||
| Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements (consolidated financial statements) include the accounts of Ball Corporation and its controlled affiliates, including its consolidated variable interest entities (collectively Ball, the company, we or our), and have been prepared by the company. Certain information and footnote disclosures, including critical and significant accounting policies normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted for this quarterly presentation. Results of operations for the periods shown are not necessarily indicative of results for the year, particularly in view of the seasonality in the packaging segments. These consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and the notes thereto included in the company’s 2023 Annual Report on Form 10-K filed on February 20, 2024, pursuant to the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2023 (annual report). The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and reported amounts of 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 consolidated financial statements reflect all adjustments that are of a normal recurring nature and are necessary to fairly state the results of the periods presented. On February 16, 2024, the company completed the divestiture of its aerospace business. The transaction represents a strategic shift; therefore, the company’s consolidated financial statements reflect the aerospace business’ financial results as discontinued operations for all periods presented. The aerospace business was historically presented as a reportable segment. Effective as of the first quarter of 2024, the company reports its financial performance in three reportable segments: (1) beverage packaging, North and Central America; (2) beverage packaging, Europe, Middle East and Africa (beverage packaging, EMEA) and (3) beverage packaging, South America. See Note 3 for additional segment information. Unless otherwise specified, these notes to the unaudited condensed consolidated financial statements reflect continuing operations only. Certain prior year amounts, including amounts related to discontinued operations, have been reclassified in order to conform to the current year presentation. See Note 4 for additional discontinued operations information. Risks and Uncertainties Global Economic Environment Recent data has indicated continued high inflation in the regions where we operate. Current and future inflationary effects may continue to be impacted by, among other things, supply chain disruptions, governmental stimulus or fiscal and monetary policies, changes in interest rates, and changing demand for certain goods and services. We cannot predict with any certainty the impact that rising interest rates, a global or any regional recession, or higher inflation may have on our customers or suppliers. Additionally, we are unable to predict the potential effects that any future pandemic, or the continuation or escalation of global conflicts, including the conflict between Russia and Ukraine and the rising instability in the Middle East, and related sanctions or market disruptions, may have on our business. It remains uncertain how long any of these conditions may last or how severe any of them may become. Ball management has reviewed the estimates used in preparing the company’s consolidated financial statements and the following have a reasonably possible likelihood of being affected, to a material extent, by the direct and indirect impacts of the current global economic environment in the near-term.
In addition to the above potential impacts on the estimates used in preparing the consolidated financial statements, the current global economic environment has the potential to increase Ball’s vulnerabilities to near-term severe impacts related to certain concentrations in its business. In line with other companies in the packaging industry, Ball makes the majority of its sales and significant purchases to or from a relatively small number of global, or large regional, customers and suppliers. Furthermore, Ball makes the majority of its sales from a small number of product lines. The potential of the current global economic environment to affect a significant customer or supplier, or to affect demand for certain products to a significant degree, heightens the vulnerability of Ball to these concentrations. Argentina Although Ball's functional currency in Argentina is the U.S. dollar, a portion of its transactions are denominated in pesos. During the fourth quarter of 2023, Argentina suddenly devalued its peso relative to the U.S. dollar as one of the economic policies implemented by the new government with the goal of stabilizing and growing the economy. The government has implemented additional policies with the same goal in mind, including additional taxes on the importation of certain goods. The currency devaluation, economic conditions and policies in Argentina make it difficult to manage currency exchange rate risk and may lead to additional adverse effects on the company’s results of operations. Ball’s Argentinean business is presented in its beverage packaging, South America, reportable operating segment. Ball’s peso-denominated net monetary assets in Argentina were approximately $9 million at June 30, 2024. As of June 30, 2024, Ball’s Argentinean business had net asset exposure of $384 million, which consisted primarily of working capital and property, plant and equipment. |
Accounting Pronouncements |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Accounting Pronouncements | |
| Accounting Pronouncements | 2. Accounting Pronouncements Recently Adopted Accounting Standards Supplier Finance Programs In 2022, new guidance was issued by the Financial Accounting Standards Board (FASB) with the goal of enhancing transparency around supplier finance programs. On January 1, 2023, Ball adopted all required disclosures effective for 2023, on a retrospective basis. The company will adopt the rollforward disclosure requirements, on a prospective basis, in its 2024 annual report. The company has several regional supplier finance programs, all of which have substantially similar characteristics, with various financial institutions that act as the paying agent for certain payables of the company. The company establishes these programs through agreements with the financial institutions to enable more efficient payment processing to our suppliers while also providing our suppliers a potential source of liquidity to the extent they enter into a factoring agreement with the financial institutions. Our suppliers’ participation in the programs is voluntary, and the company is not involved in negotiations of the suppliers’ arrangements with the financial institutions to sell their receivables, and our rights and obligations to our suppliers are not impacted by our suppliers’ decisions to sell amounts under these programs. Under these supplier finance programs, the company pays the financial institutions the stated amount of confirmed invoices from its participating suppliers on the original maturity dates of the invoices, which vary based on the negotiated terms with each supplier. All payment terms are short-term in nature and are not dependent on whether the suppliers participate in the supplier finance programs or if the suppliers elect to receive early payment from the financial institutions. Our supplier finance programs do not include any of the following: guarantees to the financial institutions, assets pledged as securities or interest accruing on the obligation prior to the due date. Based on the review of the facts and circumstances of our supplier finance programs, including but not limited to those noted above, the company has concluded that the characteristics of the obligations due under our supplier finance programs have not changed and remain those of standard accounts payable, rather than indicative of debt. The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's programs was $515 million and $703 million at June 30, 2024 and December 31, 2023, respectively. These amounts are classified within accounts payable on the unaudited condensed consolidated balance sheets, and the associated payments are reflected in the cash flows from operating activities section of the unaudited condensed consolidated statements of cash flows. New Accounting Guidance and Disclosure Requirements Climate Disclosures In 2024, the Securities and Exchange Commission (SEC) adopted final rules to require disclosures about material climate-related risks, the actual and potential impact of the risks and additional related disclosures. The final rules are currently under a stay by the SEC and the effective dates for the rules are uncertain. The company is continuing to assess the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a prospective basis when the rules become effective for Ball. Income Tax Disclosures In 2023, new guidance was issued by the FASB with the goal of providing financial statement users with more information in the income tax rate reconciliation table and regarding income taxes paid. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a prospective basis in its 2025 annual report. Segment Reporting In 2023, new guidance was issued by the FASB with the goal of providing financial statement users with more information about reportable segments, including more disaggregated expense information. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a retrospective basis in its 2024 annual report and interim periods thereafter.
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Business Segment Information |
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| 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 three reportable segments outlined below. Beverage packaging, North and Central America: Consists of operations in the U.S., Canada and Mexico that manufacture and sell aluminum beverage containers throughout those countries. Beverage packaging, EMEA: Consists of operations in numerous countries throughout Europe, as well as Egypt and Turkey, that manufacture and sell aluminum beverage containers throughout those countries. Beverage packaging, South America: Consists of operations in Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum beverage containers throughout most of South America. As presented in the table below, Other consists of a non-reportable operating segment (beverage packaging, other) that manufactures and sells aluminum beverage containers in India, Saudi Arabia and Myanmar; a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and recloseable aluminum bottles across multiple consumer categories as well as aluminum slugs (aerosol packaging) throughout North America, South America, Europe, and Asia; a non-reportable operating segment that manufactures and sells aluminum cups (aluminum cups); undistributed corporate expenses; and intercompany eliminations and other business activities. The accounting policies of the segments are the same as those used in the consolidated financial statements, as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, the U.S. and Vietnam that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings. Summary of Business by Segment
The company does not disclose total assets by segment as such information is not provided to the chief operating decision maker. |
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| Acquisitions and Dispositions | 4. Acquisitions and Dispositions Aerospace In the third quarter of 2023, Ball entered into a Stock Purchase Agreement (Agreement) with BAE Systems, Inc. (BAE) and, for the limited purposes set forth therein, BAE Systems plc, to sell all outstanding equity interests in Ball’s aerospace business. On February 16, 2024, the company completed the divestiture of the aerospace business for a purchase price of $5.6 billion, subject to working capital adjustments and other customary closing adjustments under the terms of the Agreement. The company is in the process of finalizing the working capital adjustments and other customary closing adjustments with BAE, which is currently expected to be completed in 2024 and may adjust the final cash proceeds and gain on sale amounts. The divestiture resulted in a pre-tax gain of $4.67 billion, which is net of $20 million of costs to sell incurred and paid in 2023 related to the disposal. Cash proceeds received at close from the sale of $5.42 billion, net of the cash disposed, are presented in business dispositions, net of cash sold, in the unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2024. The company expects to pay approximately $1.00 billion in income taxes related to the transaction throughout 2024, of which $461 million has been paid as of June 30, 2024. The remaining amount of income taxes related to the transaction is recorded in other current liabilities in the unaudited condensed consolidated balance sheet. Additionally, the completion of the divestiture resulted in the removal of the aerospace business from the company’s obligor group, as the business no longer guarantees the company’s senior notes and senior credit facilities. The sale of the aerospace business represents a strategic shift that will have a major effect on Ball’s operations and financial results, including the removal of the aerospace reportable segment. Due to this shift, for all periods presented, the consolidated financial statements reflect the aerospace business’ financial results as discontinued operations in the unaudited condensed consolidated statements of earnings, and its assets and liabilities are presented as assets and liabilities held for sale in the unaudited condensed consolidated balance sheet as of December 31, 2023. See Note 1 for further information on the basis of presentation. The following table presents components of discontinued operations, net of tax for the three and six months ended June 30, 2024 and 2023:
The following table presents assets and liabilities that are classified as held for sale on the unaudited condensed consolidated balance sheet as of December 31, 2023:
The following table presents depreciation and amortization, capital expenditures and significant operating and investing noncash items from discontinued operations for the six months ended June 30, 2024 and 2023 included within the consolidated statements of cash flows. Amounts include adjustments to reconcile net earnings to cash provided by (used in) operating activities:
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 consolidated statements of cash flows. A summary of the PP&E acquired but not yet paid for from discontinued operations is as follows:
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| 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:
Contract Balances The company did not have any contract assets at either June 30, 2024, or December 31, 2023. Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional. The opening and closing balances of the company’s current and noncurrent contract liabilities are as follows:
During the six months ended June 30, 2024, contract liabilities decreased by million, which is net of cash received of $84 million and amounts recognized as sales of $123 million, the majority of which related to current contract liabilities. The amount of sales recognized in the six months ended June 30, 2024, that was included in the opening contract liabilities balance, was $114 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 payments. Current contract liabilities are classified within other current liabilities on the unaudited condensed consolidated balance sheets and noncurrent contract liabilities are classified within other liabilities. |
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Business Consolidation and Other Activities |
6 Months Ended |
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Jun. 30, 2024 | |
| Business Consolidation and Other Activities | |
| Business Consolidation and Other Activities | 6. Business Consolidation and Other Activities Business consolidation and other activities resulted in charges of $60 million and $86 million for the three and six months ended June 30, 2024, respectively, in the unaudited condensed consolidated statements of earnings. During the three and six months ended, the charges were primarily related to facility closure costs and costs for employee severance, employee benefits and other related items resulting from the company restructuring its operating model. The charges for the six months ended June 30, 2024, were partially offset by income from the receipt of insurance proceeds for replacement costs related to the 2023 fire at the company’s Verona, Virginia extruded aluminum slug manufacturing facility. Business consolidation and other activities resulted in income of $6 million and charges of $14 million for the three and six months ended June 30, 2023, respectively, in the unaudited condensed consolidated statements of earnings. During the six months ended, June 30, 2023, the charges of $14 million primarily related to facility closure costs. |
Supplemental Cash and Cash Flow Statement Disclosures |
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| Supplemental Cash Flow Statement Disclosures |
The company’s restricted cash is primarily related to receivables factoring programs and represents amounts collected from customers that have not yet been remitted to the banks as of the end of the reporting period. Noncash investing activities include the acquisition of property, plant and equipment (PP&E) for which payment has not been made. These noncash capital expenditures are excluded from the unaudited condensed consolidated statements of cash flows. A summary of the PP&E acquired but not yet paid, inclusive of amounts related to the historical aerospace business, is as follows:
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Receivables, Net |
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| Receivables, Net | 8. Receivables, Net
The company has entered into several regional committed and uncommitted accounts receivable factoring programs with various financial institutions for certain receivables of the company. The programs are accounted for as true sales of the receivables and had combined limits of approximately $1.59 billion and $2.00 billion at June 30, 2024, and December 31, 2023, respectively. A total of $690 million and $350 million were available for sale under these programs as of June 30, 2024, and December 31, 2023, respectively. The combined limit and available for sale amount as of December 31, 2023, included $160 million and $97 million, respectively, associated with receivable factoring programs included within the historical aerospace reportable segment. The company has recorded expense related to its factoring programs of $10 million and $25 million for the three months ended June 30, 2024 and 2023, respectively, and $23 million and $40 million for the six months ended June 30, 2024 and 2023 respectively, and has presented these amounts in selling, general and administrative in its unaudited condensed consolidated statements of earnings. Other receivables include income and indirect tax receivables, aluminum scrap sale receivables and other miscellaneous receivables. |
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Inventories, Net |
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| Inventories, Net | 9. Inventories, Net
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Property, Plant and Equipment, Net |
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| Property, Plant and Equipment, Net | 10. Property, Plant and Equipment, Net
Depreciation expense was $116 million and $112 million for the three months ended June 30, 2024 and 2023, respectively, and $232 million and $221 million for the six months ended June 30, 2024 and 2023, respectively. |
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Goodwill |
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| Goodwill | 11. Goodwill
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| Intangible Assets, Net | 12. Intangible Assets, Net
Total amortization expense of intangible assets was $36 million and $38 million for the three months ended June 30, 2024 and 2023, respectively, and $78 million and $76 million for the six months ended June 30, 2024 and 2023, respectively. |
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| Other Assets. | 13. Other Assets
Investments in affiliates primarily includes the company’s 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 a 50 percent ownership interest in an entity in the U.S. |
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Leases |
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| Leases | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | 14. Leases The company enters into operating leases for buildings, warehouses, office equipment, production equipment, aircraft, land and other types of equipment. The company also enters into finance leases for certain plant equipment. Supplemental balance sheet information related to the company’s leases follows:
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Debt |
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| Debt | 15. Debt Long-term debt consisted of the following:
The company’s senior credit facilities include long-term multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $1.75 billion. At June 30, 2024, $1.69 billion was available under these revolving credit facilities. In addition to these facilities, the company had $250 million of committed short-term loans outstanding. The company also had approximately $1.00 billion of short-term uncommitted credit facilities available at June 30, 2024, of which $24 million was outstanding and due on demand. At December 31, 2023, the company had $196 million of committed short-term loans outstanding and $13 million outstanding under short-term uncommitted credit facilities. On February 14, 2024, Ball announced a public tender of the $1.00 billion 5.25% senior notes due July 2025 and the $750 million 4.875% senior notes due March 2026. On March 14, 2024, $811 million of the $1.00 billion 5.25% senior notes and $494 million of the $750 million 4.875% senior notes were validly tendered and accepted. Additionally, in the first quarter of 2024, Ball repaid at maturity the outstanding 0.875% euro denominated senior notes due in the amount of $817 million and prepaid $700 million of the Term A loan outstanding balance. The fair value of Ball’s long-term debt was estimated to be $5.20 billion and $8.07 billion at June 30, 2024 and December 31, 2023, respectively. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings and is classified as Level 2 within the fair value hierarchy. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt based on discounted cash flows. The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The company’s most restrictive debt covenant requires it to maintain a leverage ratio (as defined) of no greater than 5.0 times, which will change to 4.5 times as of September 30, 2025. The company was in compliance with the leverage ratio requirement at June 30, 2024, and for all prior periods presented, and has met all debt payment obligations. |
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Taxes on Income |
6 Months Ended |
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Jun. 30, 2024 | |
| Taxes on Income | |
| Taxes on Income | 16. Taxes on Income The company’s effective tax rate was 24.5 percent and 25.2 percent for the three and six months ended June 30, 2024, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2024, increased by 1.7 and 1.2 percentage points, respectively, for state and local taxes, increased by 1.1 and 1.5 percentage points, respectively, for non-U.S. rate differences and withholding taxes net of credits and increased by 0.7 and 0.8 percentage points, respectively, related to Pillar Two Global Minimum Taxes. The company’s effective tax rate was 19.2 percent and 20.3 percent for the three and six months ended June 30, 2023, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2023 increased by 0.6 percentage points for state and local taxes, decreased by 1.9 and 1.1 percentage points, respectively, for non-U.S. rate differences and withholding taxes net of credits and decreased by 0.8 and 0.9 percentage points, respectively, for the effects of share-based compensation.
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Employee Benefit Obligations |
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| Employee Benefit Obligations | 17. Employee Benefit Obligations
Components of net periodic benefit cost associated with the company’s defined benefit pension plans were as follows:
Non-service pension income of $1 million and $9 million for the three months ended June 30, 2024 and 2023, respectively, and income of $2 million and $16 million for the six months ended June 30, 2024 and 2023 respectively, is included in selling, general and administrative in the unaudited condensed consolidated statements of earnings. Contributions to the company’s defined benefit pension plans were $15 million for the first six months of 2024 compared to $9 million for the first six months of 2023, and such contributions are expected to be approximately $28 million for the full year of 2024. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors. In November 2023, the Trustee Board of the U.K. defined benefit pension plan entered into an agreement with an insurance company for a bulk annuity purchase, or “buy-in”, for its U.K. defined benefit pension plan to reduce retirement plan risk, while delivering promised benefits to plan participants. This transaction allows the company to reduce volatility by removing investment, longevity, mortality, interest rate and inflation risk upon the transfer of substantially all of the pension plan assets to the insurer in exchange for the group annuity insurance contract. At this time the company retains both the fair value of the annuity contract within plan assets and the pension benefit obligations related to these participants. The plan was frozen on April 5, 2024, and future service accruals were replaced with enhanced defined contribution benefits for the impacted employees. The company anticipates the “buy-out” may occur within two years of the plan freeze, which will trigger a pension settlement that will result in all plan balances, including accumulated pension components within other comprehensive income, being charged to expense as a noncash settlement charge. |
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Equity and Accumulated Other Comprehensive Earnings (Loss) |
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| Equity and Accumulated Other Comprehensive Earnings (Loss) | 18. Equity and Accumulated Other Comprehensive Earnings (Loss) The following tables provide additional details of the company’s equity activity, inclusive of activity related to the aerospace business impacting the company’s equity:
On April 24, 2024, Ball’s Board of Directors approved the repurchase by the company of up to a total of 40 million shares of its common stock. This repurchase authorization replaced all previous authorizations. Accumulated Other Comprehensive Earnings (Loss) The activity related to accumulated other comprehensive earnings (loss) was as follows:
(a) Includes amounts associated with the Salaried Employees of Ball Aerospace & Technologies Corp. Pension Plan. The following table provides additional details of the amounts reclassified into net earnings from accumulated other comprehensive earnings (loss):
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Earnings and Dividends Per Share |
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| Earnings and Dividends Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings (Loss) and Dividends Per Share | 19. Earnings and Dividends Per Share
Certain outstanding options were excluded from the diluted earnings per share calculation because they were anti-dilutive. The excluded options totaled approximately 5 million and 4 million for the three months ended June 30, 2024 and 2023, respectively, and 5 million and 4 million for the six months ended June 30, 2024 and 2023, respectively. The company declared and paid dividends of $0.20 per share for the three months ended June 30, 2024 and 2023, and $0.40 per share for the six months ended June 30, 2024 and 2023. |
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Financial Instruments and Risk Management |
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| Financial Instruments and Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments and Risk Management | 20. Financial Instruments and Risk Management Policies and Procedures The company employs established risk management policies and procedures, which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to offset any amounts owed with regard to open derivative positions. Commodity Price Risk - The company manages commodity price risk in connection with market price fluctuations of aluminum through two different methods. First, the company enters into container sales contracts that include aluminum-based pricing terms which generally reflect the same price fluctuations under commercial purchase contracts for aluminum sheet. The terms include fixed, floating or pass through aluminum component pricing. Second, the company uses certain derivative instruments, including option and forward contracts, as economic and cash flow hedges of commodity price risk where there are material differences between sales and purchase contracted pricing and volume. Interest Rate Risk - The company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. To achieve these objectives, the company may use a variety of interest rate swaps, collars and options to manage its mix of floating and fixed-rate debt. 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. The following table provides additional information related to the commercial risk management derivative instruments described above:
Common Stock Price Risk The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. The company entered into total return swaps to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding through March 2025, and which have a combined notional value of 1.4 million shares. Based on the current number of shares in the program, each $1 change in the company’s stock price would have an insignificant impact on pretax earnings, net of the impact of related derivatives. Fair Value Measurements Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of June 30, 2024, and December 31, 2023, and presented those values in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
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 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 present value discounting factor is based on the comparable time period Secured Overnight Financing Rate (SOFR), London Inter-Bank Offered Rate (LIBOR) or 12-month LIBOR. Ball performs validations of the company’s internally derived fair values reported for the company’s financial instruments on a quarterly basis utilizing counterparty valuation statements. The company additionally evaluates counterparty creditworthiness and, as of June 30, 2024, 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 unaudited condensed consolidated statements of earnings and on accumulated other comprehensive earnings (loss):
The changes in accumulated other comprehensive earnings (loss) for derivatives designated as hedges were as follows:
In July 2024, we entered into and designated two net investment hedges against the net assets of our euro denominated operations. We utilized cross-currency interest rate swaps for which the notional amounts of €250 million and €600 million mature in the first quarter of 2027 and the second quarter of 2029, respectively. |
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Contingencies |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Contingencies | |
| Contingencies | 21. Contingencies Ball is subject to numerous lawsuits, claims or proceedings arising out of the ordinary course of business, including actions related to product liability; personal injury; the use and performance of company products; warranty matters; patent, trademark or other intellectual property infringement; contractual liability; the conduct of the company’s business; tax reporting in domestic and non-U.S. 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 for all currently known and estimable environmental matters are approximately $26 million in the aggregate, and such amounts have been included in other current liabilities and other noncurrent liabilities at June 30, 2024. Based on the information available at the present time, any reasonably possible loss that may be incurred in excess of the recorded accruals cannot be estimated. On February 1, 2012, Ball Metal Beverage Container Corp. (“BMBCC”) filed suit against Crown Technology Holding, Inc. (“Crown”) in the United States District Court for the Southern District of Ohio seeking a declaratory judgment that the CDL beverage can end made and sold by BMBCC did not infringe certain U.S. patents held by Crown. In response, Crown filed a counterclaim alleging that the CDL ends made and sold by BMBCC infringed the subject patents and seeking damages. On September 25, 2019, the District Court granted BMBCC’s motion for summary judgment holding that the patents at issue were invalid due to indefiniteness. On October 20, 2019, Crown appealed this decision to the Court of Appeals for the Federal Circuit (“CAFC”). On December 31, 2020, the CAFC in a non-precedential decision, vacated the decision of the District Court finding that the District Court had not considered an additional factor under a novel position advanced by the CAFC, and remanded the case to the District Court for further proceedings. On August 2, 2023, the District Court again granted summary judgment to Ball finding that patent claims at issue are invalid due to invalidity under the revised analytical framework specified by the CAFC. On August 4, 2023, Crown appealed this decision to the CAFC. Briefing for this appeal concluded on February 20, 2024. Oral argument is expected to be scheduled during 2024 with a decision to follow. Based on the information available at the present time, the Company is unable to predict the ultimate outcome of this claim including the amount of any reasonably possible loss and we intend to vigorously defend this matter.
The company’s operations in Brazil are involved in various governmental assessments, which have historically mainly related to claims for taxes on the internal transfer of inventory, gross revenue taxes, and indirect tax incentives and deductibility of goodwill. In addition, one of the company’s Brazilian subsidiaries received an income tax assessment focused on the disallowance of deductions associated with the acquisition price paid to a third party for a portion of its operations. Based on the information available at the present time, the Company is unable to predict the ultimate outcome of these claims including the amount of reasonably possible loss and intends to vigorously defend these matters.
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Indemnifications and Guarantees |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Indemnifications and Guarantees | |
| Indemnifications and Guarantees | 22. Indemnifications and Guarantees General Guarantees The company or its appropriate consolidated direct or indirect subsidiaries have made certain indemnities, commitments and guarantees under which the specified entity may be required to make payments in relation to certain transactions. These indemnities, commitments and guarantees include indemnities to the customers of the subsidiaries in connection with the sales of their packaging products and services; guarantees to suppliers of subsidiaries of the company guaranteeing the performance of the respective entity under a purchase agreement, construction contract, renewable energy purchase contract or other commitment; guarantees in respect of certain non-U.S. subsidiaries’ pension plans; indemnities for liabilities associated with the infringement of third-party patents, trademarks or copyrights under various types of agreements; indemnities to various lessors in connection with facility, equipment, furniture and other personal property leases for certain claims arising from such leases; indemnities pursuant to agreements relating to certain joint ventures; indemnities in connection with the sale of businesses or substantially all of the assets and specified liabilities of businesses; and indemnities to directors, officers and employees of the company to the extent permitted under the laws of the State of Indiana and the United States of America. The duration of these indemnities, commitments and guarantees varies and, in certain cases, is indefinite. In addition, many of these indemnities, commitments and guarantees do not provide for any limitation on the maximum potential future payments the company could be obligated to make. As such, the company is unable to reasonably estimate its potential exposure under these items. The company has not recorded any material liabilities for these indemnities, commitments and guarantees in the accompanying unaudited condensed consolidated balance sheets. The company does, however, accrue for payments under promissory notes and other evidences of incurred indebtedness and for losses for any known contingent liability, including those that may arise from indemnifications, commitments and guarantees, when future payment is both reasonably estimable and probable. Finally, the company carries specific and general liability insurance policies and has obtained indemnities, commitments and guarantees from third-party purchasers, sellers and other contracting parties, which the company believes would, in certain circumstances, provide recourse to certain claims arising from these indemnifications, commitments and guarantees. Debt Guarantees The company’s and its subsidiaries’ obligations under the senior notes and senior credit facilities (or, in the case of U.S. domiciled non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. credit parties only) are guaranteed on a full, unconditional and joint and several basis by certain of the company’s domestic subsidiaries and the domestic subsidiary borrowers, and obligations of other guarantors and the subsidiary borrowers under the senior credit facilities are guaranteed by the company, in each case with certain exceptions. These guarantees are required in support of the senior notes and senior credit facilities referred to above, are coterminous with the terms of the respective note indentures, senior notes and credit agreement, and they 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 then-outstanding obligations under the respective senior notes or the credit agreement (or, in the case of U.S. domiciled non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. credit parties only), with certain exceptions. All obligations under the guarantees of the senior credit facilities are secured, with certain exceptions, by a valid first priority perfected lien or pledge on (i) 100 percent of the capital stock of each of the company's material wholly owned domestic subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries and (ii) 65 percent of the capital stock of each of the company's material wholly owned first-tier non-U.S. subsidiaries directly owned by the company or any of its wholly owned domestic subsidiaries. In addition, the obligations of certain non-U.S. borrowers and non-U.S. pledgors under the loan documents will be secured, with certain exceptions, by a valid first priority perfected lien or pledge on 100 percent of the capital stock of certain of the company's material wholly owned non-U.S. subsidiaries and material wholly owned U.S. domiciled non-U.S. subsidiaries directly owned by the company or any of its wholly owned material subsidiaries. The company is not in default under the above-referenced senior notes or senior credit facilities. |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Business Segment Information (Tables) |
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| Summary of business by segment |
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Acquisitions and Dispositions (Tables) |
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| Schedule of components of discontinued operations |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts With Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contracts with Customers | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of the disaggregation of revenue by timing of transfer of control |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of balances of contract liabilities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash and Cash Flow Statement Disclosures (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Cash Flow Statement Disclosures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of cash, cash equivalents and restricted cash |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of PP&E acquired but not yet paid |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables, Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of receivables |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories, Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of inventories |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of property, plant and equipment |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of goodwill |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Finite-Lived Intangible Assets |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Assets.. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of other assets |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of supplemental balance sheet information related to leases |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of long-term debt |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Obligations (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefit Obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of employee benefit obligations |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Defined Benefit Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefit Obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of net periodic benefit cost |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Accumulated Other Comprehensive Earnings (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity and Accumulated Other Comprehensive Earnings (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of company's equity activity |
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| Schedule of activity related to accumulated other comprehensive earnings (loss) |
(a) Includes amounts associated with the Salaried Employees of Ball Aerospace & Technologies Corp. Pension Plan.
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| Information related to amounts reclassified into net earnings from accumulated other comprehensive earnings (loss) |
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Earnings and Dividends Per Share (Tables) |
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| Earnings and Dividends Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of earnings (loss) per share |
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Financial Instruments and Risk Management (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Financial Instruments and Risk Management | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of additional information related to the commercial risk management instruments |
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| Schedule of fair value of derivative instruments |
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| Schedule of impact on earnings (loss) from derivative instruments |
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| Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives |
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Basis of Presentation (Details) |
3 Months Ended | 6 Months Ended |
|---|---|---|
|
Mar. 31, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
segment
|
|
| Basis of Presentation | ||
| Number of reportable segments | 3 | 3 |
| ARGENTINA | ||
| Basis of Presentation | ||
| Net assets | $ 9,000,000 | |
| Net asset exposure | $ 384,000,000 |
Accounting Pronouncements (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Accounting Pronouncements | ||
| Financial institutions obligation outstanding | $ 515 | $ 703 |
Business Segment Information - Summary of Business (Details) |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
|
Jun. 30, 2024
USD ($)
|
Mar. 31, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
segment
|
Jun. 30, 2023
USD ($)
|
|
| Business Segment Information | |||||
| Number of reportable segments | 3 | 3 | |||
| Net sales | |||||
| Net sales | $ 2,959,000,000 | $ 3,067,000,000 | $ 5,833,000,000 | $ 6,048,000,000 | |
| Reconciling items | |||||
| Other | 2,000,000 | (8,000,000) | (70,000,000) | 7,000,000 | |
| Business consolidation and other activities | (60,000,000) | 6,000,000 | (86,000,000) | (14,000,000) | |
| Amortization of acquired intangibles | (36,000,000) | (38,000,000) | (78,000,000) | (76,000,000) | |
| Interest expense | (68,000,000) | (116,000,000) | (161,000,000) | (229,000,000) | |
| Debt refinancing and other costs | (1,000,000) | (3,000,000) | |||
| Earnings before taxes | 200,000,000 | 151,000,000 | 301,000,000 | 305,000,000 | |
| Undistributed corporate expenses | 21,000,000 | 32,000,000 | 117,000,000 | 42,000,000 | |
| Corporate interest income | 18,000,000 | 7,000,000 | 44,000,000 | 11,000,000 | |
| Depreciation and Amortization | |||||
| Depreciation and amortization | 319,000,000 | 336,000,000 | |||
| Operating segments | |||||
| Net sales | |||||
| Net sales | 2,771,000,000 | 2,862,000,000 | 5,466,000,000 | 5,650,000,000 | |
| Comparable operating earnings | |||||
| Reportable segment comparable operating earnings | 360,000,000 | 303,000,000 | 692,000,000 | 609,000,000 | |
| Operating segments | Beverage packaging, North And Central America | |||||
| Net sales | |||||
| Net sales | 1,469,000,000 | 1,537,000,000 | 2,872,000,000 | 3,041,000,000 | |
| Comparable operating earnings | |||||
| Reportable segment comparable operating earnings | 210,000,000 | 175,000,000 | 402,000,000 | 358,000,000 | |
| Operating segments | Beverage packaging, EMEA | |||||
| Net sales | |||||
| Net sales | 880,000,000 | 920,000,000 | 1,690,000,000 | 1,754,000,000 | |
| Comparable operating earnings | |||||
| Reportable segment comparable operating earnings | 113,000,000 | 98,000,000 | 198,000,000 | 171,000,000 | |
| Operating segments | Beverage packaging, South America | |||||
| Net sales | |||||
| Net sales | 422,000,000 | 405,000,000 | 904,000,000 | 855,000,000 | |
| Comparable operating earnings | |||||
| Reportable segment comparable operating earnings | 37,000,000 | 30,000,000 | 92,000,000 | 80,000,000 | |
| Other. | |||||
| Net sales | |||||
| Net sales | 188,000,000 | 205,000,000 | 367,000,000 | 398,000,000 | |
| Reconciling Items | |||||
| Reconciling items | |||||
| Incremental compensation cost including cash bonuses and stock-based compensation | 3,000,000 | 82,000,000 | |||
| Corporate interest income | 12,000,000 | 29,000,000 | |||
| Rexam | |||||
| Reconciling items | |||||
| Amortization of acquired intangibles | $ (33,000,000) | $ (34,000,000) | $ (71,000,000) | $ (68,000,000) | |
Acquisitions and Dispositions - Discontinued Operations Aerospace (Details) - USD ($) $ in Millions |
6 Months Ended | |
|---|---|---|
Feb. 16, 2024 |
Jun. 30, 2024 |
|
| Schedule of Equity Method Investments [Line Items] | ||
| Business dispositions, net of cash sold | $ 5,422 | |
| Gain on disposition | 4,695 | |
| Discontinued Operations, Disposed of by Sale | Aerospace Business | ||
| Schedule of Equity Method Investments [Line Items] | ||
| Pre-tax gain | $ 20 | |
| Business dispositions, net of cash sold | 5,420 | |
| Tax Effect of Gain (Loss) | 1,000 | |
| Income taxes paid related to transaction | $ 461 | |
| Consideration for the sale of business | 5,600 | |
| Gain on disposition | $ 4,670 |
- Acquisitions and Dispositions - Discontinued operations, net of tax (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Acquisitions and Dispositions | |||
| Net sales | $ 499 | $ 261 | $ 1,007 |
| Cost of sales (excluding depreciation and amortization) | (410) | (214) | (823) |
| Depreciation and amortization | (20) | (9) | (39) |
| Selling, general and administrative | (15) | (11) | (31) |
| Interest expense | 1 | 1 | |
| Gain on disposition | 4,695 | ||
| Tax (provision) benefit | (7) | (1,115) | (15) |
| Discontinued operations, net of tax | $ 48 | $ 3,607 | $ 100 |
Acquistions and Dispositions - Assets and liabilities classified as held for sale (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
|---|---|
| Current assets | |
| Receivables | $ 277 |
| Other current assets | 56 |
| Total current assets | 333 |
| Noncurrent assets | |
| Property, plant and equipment, net | 665 |
| Other assets | 188 |
| Total assets of discontinued operations | 1,186 |
| Current liabilities | |
| Accounts payable | 92 |
| Accrued employee costs | 88 |
| Deferred revenue | 221 |
| Other current liabilities | 34 |
| Total current liabilities | 435 |
| Noncurrent liabilities | |
| Employee benefit obligations | 163 |
| Other liabilities | 74 |
| Total liabilities of discontinued operations | $ 672 |
Acquisitions and Dispositions - Significant cash flow items from discontinued operations (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Acquisitions and Dispositions | |||
| Depreciation and amortization | $ (20) | $ (9) | $ (39) |
| Gain on Aerospace disposal | (4,695) | ||
| Capital expenditures | $ (13) | $ (49) | |
Acquisitions and Dispositions - Acquisition of property, plant and equipment (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Schedule of Equity Method Investments [Line Items] | ||||
| PP&E acquired but not yet paid | $ 139 | $ 204 | $ 204 | $ 392 |
| Discontinued Operations, Disposed of by Sale | ||||
| Schedule of Equity Method Investments [Line Items] | ||||
| PP&E acquired but not yet paid | $ 17 | $ 21 | ||
Revenue from Contracts With Customers - Disaggregation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Revenue from Contracts with Customers | ||||
| Commodity contracts recorded in net sales | $ 2,959 | $ 3,067 | $ 5,833 | $ 6,048 |
| Point in Time | ||||
| Revenue from Contracts with Customers | ||||
| Commodity contracts recorded in net sales | 627 | 557 | 1,183 | 1,099 |
| Over Time | ||||
| Revenue from Contracts with Customers | ||||
| Commodity contracts recorded in net sales | $ 2,332 | $ 2,510 | $ 4,650 | $ 4,949 |
Revenue from Contracts With Customers - Contract Balances (Details) - USD ($) $ in Millions |
6 Months Ended | |
|---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
| Contract Balances | ||
| Contract assets | $ 0 | $ 0 |
| Balance at beginning of period, Contract Liabilities (Current) | 114 | |
| Increase (decrease) contract liabilities (current) | (38) | |
| Balance at end of period, Contract Liabilities (Current) | 76 | |
| Balance at beginning of period, Contract Liabilities (Noncurrent) | 3 | |
| Increase (decrease) contract liabilities (noncurrent) | (1) | |
| Balance at end of period, Contract Liabilities (Noncurrent) | 2 | |
| Total increase (decrease) in contract liabilities | (39) | |
| Cash received on contract liabilities | 84 | |
| Revenue recognized as sales | 123 | |
| Revenue recognized from opening balance of contract liabilities | $ 114 |
Business Consolidation and Other Activities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Business consolidation and other activities | ||||
| Business consolidation and other activities | $ (60) | $ 6 | $ (86) | $ (14) |
| Gain on Aerospace disposal | $ 4,695 | |||
| Disposal group, disposed of by sale, not discontinued operations | Aerospace Business | ||||
| Business consolidation and other activities | ||||
| Business consolidation and other activities | $ 14 | |||
Supplemental Cash and Cash Flow Statement Disclosures (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Cash, Cash Equivalents and Restricted Cash | ||||||
| Cash and cash equivalents | $ 1,346 | $ 955 | $ 1,346 | $ 955 | $ 695 | $ 548 |
| Current restricted cash (included in other current assets) | $ 2 | $ 13 | $ 2 | $ 13 | 15 | 10 |
| Location of current restricted cash | Other current assets | Other current assets | Other current assets | Other current assets | ||
| Cash, cash equivalents and restricted cash - beginning of period | $ 1,348 | $ 968 | $ 1,348 | $ 968 | 710 | 558 |
| Corporate interest income | $ 18 | $ 7 | 44 | 11 | ||
| Other Non-cash items | ||||||
| Noncash capital expenditures | $ 139 | $ 204 | $ 204 | $ 392 | ||
Receivables, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
| Receivables | |||||
| Trade accounts receivable | $ 1,721 | $ 1,721 | $ 1,165 | ||
| Unbilled receivables | 486 | 486 | 520 | ||
| Less: Allowance for doubtful accounts | (14) | (14) | (15) | ||
| Net trade accounts receivable | 2,193 | 2,193 | 1,670 | ||
| Other receivables | 518 | 518 | 387 | ||
| Receivables, net | 2,711 | 2,711 | 2,057 | ||
| Maximum available sale of the accounts receivables under factoring program | 1,590 | 2,000 | |||
| Amount of accounts receivable available for sale under the factoring program | 690 | 690 | 350 | ||
| Factoring program expense included in statement of earnings | $ 10 | $ 25 | $ 23 | $ 40 | |
| Aerospace | |||||
| Receivables | |||||
| Maximum available sale of the accounts receivables under factoring program | 160 | ||||
| Amount of accounts receivable available for sale under the factoring program | $ 97 | ||||
Inventories, Net (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Inventories, Net | ||
| Raw materials and supplies | $ 1,036 | $ 1,182 |
| Work-in-process and finished goods | 478 | 440 |
| Less: Inventory reserves | (88) | (91) |
| Inventories, net | $ 1,426 | $ 1,531 |
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
| Property, plant and equipment | |||||
| Property, plant and equipment, gross | $ 10,779 | $ 10,779 | $ 10,822 | ||
| Accumulated depreciation | (4,232) | (4,232) | (4,107) | ||
| Net property, plant and equipment | 6,547 | 6,547 | 6,715 | ||
| Depreciation expense | 116 | $ 112 | 232 | $ 221 | |
| Land | |||||
| Property, plant and equipment | |||||
| Property, plant and equipment, gross | 203 | 203 | 215 | ||
| Buildings | |||||
| Property, plant and equipment | |||||
| Property, plant and equipment, gross | 1,786 | 1,786 | 1,792 | ||
| Machinery and equipment | |||||
| Property, plant and equipment | |||||
| Property, plant and equipment, gross | 7,730 | 7,730 | 7,636 | ||
| Construction-in-progress | |||||
| Property, plant and equipment | |||||
| Property, plant and equipment, gross | $ 1,060 | $ 1,060 | $ 1,179 | ||
Goodwill (Details) $ in Millions |
6 Months Ended |
|---|---|
|
Jun. 30, 2024
USD ($)
| |
| Goodwill | |
| Balance at the beginning of the period | $ 4,250 |
| Effects of currency exchange | (62) |
| Other | 2 |
| Balance at the end of the period | 4,190 |
| Beverage packaging, North And Central America | |
| Goodwill | |
| Balance at the beginning of the period | 1,277 |
| Balance at the end of the period | 1,277 |
| Beverage packaging, EMEA | |
| Goodwill | |
| Balance at the beginning of the period | 1,378 |
| Effects of currency exchange | (46) |
| Balance at the end of the period | 1,332 |
| Beverage packaging, South America | |
| Goodwill | |
| Balance at the beginning of the period | 1,298 |
| Other | 2 |
| Balance at the end of the period | 1,300 |
| Other | |
| Goodwill | |
| Balance at the beginning of the period | 297 |
| Effects of currency exchange | (16) |
| Balance at the end of the period | $ 281 |
Intangibles Assets, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
| Total annual intangible asset amortization expense | |||||
| Intangible assets (net of accumulated amortization) | $ 1,159 | $ 1,159 | $ 1,248 | ||
| Amortization expense | 36 | $ 38 | 78 | $ 76 | |
| Customer relationships and other intangibles | |||||
| Total annual intangible asset amortization expense | |||||
| Intangible assets (net of accumulated amortization) | 1,114 | 1,114 | 1,197 | ||
| Accumulated amortization and impairment losses | 1,080 | 1,080 | 1,060 | ||
| Capitalized software | |||||
| Total annual intangible asset amortization expense | |||||
| Intangible assets (net of accumulated amortization) | 35 | 35 | 37 | ||
| Accumulated amortization and impairment losses | 165 | 165 | 162 | ||
| Other intangibles | |||||
| Total annual intangible asset amortization expense | |||||
| Intangible assets (net of accumulated amortization) | 10 | 10 | 14 | ||
| Accumulated amortization and impairment losses | $ 14 | $ 14 | $ 49 | ||
Other Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Other assets | ||
| Long-term pension assets | $ 41 | $ 41 |
| Right-of-use operating lease assets | $ 328 | $ 365 |
| Balance sheet location for operating lease assets | Other Assets | Other Assets |
| Investments in affiliates | $ 221 | $ 212 |
| Long-term deferred tax assets | 72 | 114 |
| Other | 651 | 622 |
| Other Assets | $ 1,313 | $ 1,354 |
| 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% |
Debt - FV, Maturities, etc. (Details) $ in Millions |
6 Months Ended | |
|---|---|---|
|
Jun. 30, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
| Long term debt value | ||
| Leverage ratio, maximum | 5.0 | |
| Leverage ratio, subsequent period | 4.5 | |
| Level 2 | ||
| Long term debt value | ||
| Fair value of the long-term debt | $ 5,200 | $ 8,070 |
Taxes on Income (Details) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Effective income tax changes by percentage | ||||
| Effective tax rate expressed as a percentage of pre-tax earnings | 24.50% | 19.20% | 25.20% | 20.30% |
| Effective income tax rate reduction for expense in share based compensation | 0.80% | 0.90% | ||
| Effective income tax rate, reduction in foreign rate differences | 1.70% | 0.60% | 1.20% | 0.60% |
| Effective Income Tax Rate Reconciliation, Pillar Two Global Minimum Tax, Percent | 0.70% | 0.80% | ||
| Effective Income Tax Rate Reconciliation, Permanent Differences | 1.10% | 1.90% | 1.50% | 1.10% |
Employee Benefit Obligations - Components, Amounts recognized in BS (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Defined Benefit Plan Liability | ||
| Underfunded defined benefit pension liabilities | $ 291 | $ 323 |
| Less: Current portion | (20) | (21) |
| Long-term defined benefit pension liabilities | 271 | 302 |
| Long-term retiree medical liabilities | 83 | 90 |
| Deferred compensation plans | 209 | 280 |
| Other | 61 | 63 |
| Total employee benefit obligations | $ 624 | $ 735 |
Employee Benefit Obligations - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2024 |
|
| Defined Benefit Pension Plans | |||||
| Defined Benefit Plan Disclosure [Line Items] | |||||
| Contributions to pension plans | $ 15 | $ 9 | |||
| Expected contributions to pension plans for the full year | $ 28 | ||||
| Selling, general and administrative | |||||
| Defined Benefit Plan Disclosure [Line Items] | |||||
| Non-service pension income | $ 1 | $ 9 | $ 2 | $ 16 | |
Equity and Accumulated Other Comprehensive Earnings (Loss) - Narratives (Details) $ in Millions |
Apr. 24, 2024
USD ($)
|
|---|---|
| Equity and Accumulated Other Comprehensive Earnings (Loss) | |
| Share repurchase agreement amount | $ 40 |
Contingencies (Details) $ in Millions |
Jun. 30, 2024
USD ($)
|
|---|---|
| Environmental remediation | |
| Estimated potential liability for all environmental matters | $ 26 |
| Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current, Other Liabilities, Noncurrent |
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