Business Consolidation and Other Activities

12 Months Ended

Dec. 31, 2022

Business Consolidation and Other Activities

Business Consolidation and Other Activities

6. Business Consolidation and Other Activities

Following is a summary of business consolidation and other activity (charges)/income included in the consolidated statements of earnings:

	Years Ended December 31,
($ in millions)	2022		2021		2020
Beverage packaging, North and Central America	$	(74)	$	(6)	$	(5)
Beverage packaging, EMEA		(227)		(7)		(10)
Beverage packaging, South America		(29)		9		1
Other		259		(138)		(248)
	$	(71)	$	(142)	$	(262)

2022

Beverage Packaging, North and Central America

During 2022, the charges of $74 million primarily related to employee severance and benefits, accelerated depreciation, other shutdown costs resulting from closing the Phoenix, Arizona, facility in the fourth quarter of 2022, and the St. Paul, Minnesota, facility in the first quarter of 2023, and other charges.

Beverage Packaging, EMEA

During 2022, the charges of $227 million are primarily related to a non-cash impairment charge of $435 million for the Russian long-lived asset group and other charges, partially offset by a gain on sale of the Russian business of $222 million. See Note 4 for further details.

Beverage Packaging, South America

During 2022, the charges of $29 million are primarily related to a regional customer contract breach in Brazil and other charges. See Note 22 for further details.

Other

During 2022, the income of $259 million is primarily related to a gain of $298 million for the sale of Ball’s remaining equity method investment in Ball Metalpack, partially offset by a charge related to a donation of $30 million to The Ball Foundation and other items. See Note 4 for further details on the sale of Ball Metalpack.

2021

Beverage Packaging, South America

During 2021, the company recorded a $22 million gain related to indirect tax gain contingencies in Brazil as these amounts are now estimable and realizable. The company’s Brazilian subsidiaries filed lawsuits in 2014 and 2015 to challenge the Brazilian tax authorities regarding the computation of certain indirect taxes, claiming amounts were overpaid to the tax authorities because the tax base included a “tax on tax” component. The amounts recorded in business consolidation and other activities relate to periods prior to 2020. See Note 22 for further details.

Other

During 2021, the company recorded charges of $138 million primarily related to a non-cash settlement loss for the purchase of non-participating group annuity contracts and lump-sum payments to settle the projected pension benefit obligations for certain of Ball’s U.S. defined benefit pension plans, which triggered settlement accounting. The settlement loss primarily reflects recognition of unamortized actuarial losses in these U.S. pension plans. See Note 17 for further details.

2020

Other

During 2020, the company recorded charges of $248 million primarily related to the following amounts:

● Non-cash settlement losses of $120 million related to the purchase of non-participating group annuity contracts and lump-sum payments to settle the projected pension benefit obligations for certain of Ball’s U.S. defined benefit pension plans, which triggered settlement accounting. The settlement losses primarily reflect the recognition of aggregated unamortized actuarial losses in these U.S. pension plans. See Note 17 for further details.

● A non-cash impairment charge of $62 million related to the goodwill of the new beverage packaging, other, operating segment. See Note 11 for further details.

● A non-cash charge of $23 million resulting from the deterioration of China’s real estate market, which led the company to reduce the value of potential future consideration due as part of the sale of its China beverage packaging business.