5. Business Consolidation and Other Activities

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions)	2013			2012			2013			2012

Metal beverage packaging, Americas & Asia	$	(14.1	)	$	(31.5	)	$	(26.6	)	$	(32.9	)
Metal beverage packaging, Europe	(1.7		)	(3.5		)	(4.6		)	(6.2		)
Metal food & household products packaging	(28.9		)	—			(57.4		)	—
Aerospace & technologies	—			—			(0.2		)	—
Corporate and other	0.9			(1.8		)	(0.3		)	(4.9		)
	$	(43.8	)	$	(36.8	)	$	(89.1	)	$	(44.0	)

2013

Metal Beverage Packaging, Americas and Asia

During July 2013, the company signed a compensation agreement for approximately $72 million pretax with the PRC government to vacate the Shenzhen manufacturing facility and relocate the production equipment. Proceeds from the compensation agreement will offset costs related to the closure and relocation of the Shenzhen facility and will be composed of compensation for the disposal of the land and building, the disposal and transfer of machinery and equipment, business interruption costs and severance. Any compensation received in excess of expenses or losses incurred by the company will be reflected in business consolidation and other activities. The third quarter and first nine months included charges of $6.8 million and $8.1 million, respectively, for closure and relocation costs. The total charges in the first nine months of $8.1 million were composed of $6.6 million for severance, which will be compensated in the fourth quarter; and $1.5 million for other costs that will not be compensated under the agreement. The company also recorded charges of $7.8 million and $3.3 million, respectively, in the first nine months for the write-off of the land and building and the disposal and transfer of machinery and equipment, which were both fully compensated in the third quarter and recorded as income to offset the charges. During the third quarter, the company received $28.4 million of compensation, of which $17.3 million was deferred on the balance sheet. The remainder of the compensation is expected to be received in the fourth quarter of 2013.

The third quarter and first nine months included charges of $1.6 million and $8.7 million, respectively, to eliminate 12-ounce beverage can production from the company’s Milwaukee, Wisconsin, facility. The charges for the nine months were composed of $4.6 million for accelerated depreciation, $1.6 million for severance and other employee benefits and $2.5 million for other costs. In addition, the third quarter and first nine months of 2013 included net charges of $5.3 million and $8.4 million, respectively, primarily for ongoing costs related to the previously announced closures of Ball’s Columbus, Ohio, and Gainesville, Florida, facilities and voluntary separation programs, as well as other insignificant charges.

The third quarter and first nine months of 2013 also included net charges of $0.4 million and $1.4 million, respectively, for ongoing costs related to previously closed facilities and other insignificant costs.

Metal Beverage Packaging, Europe, and Corporate

During the third quarter and first nine months, the company recorded charges of $1.7 million and $5.5 million, respectively, primarily for headcount reductions and implementation costs incurred in connection with the relocation of the company’s European headquarters from Germany to Switzerland.

The third quarter and first nine months of 2013 also included net income of $0.9 million and $0.6 million, respectively, primarily related to previously closed facilities.

Metal Food and Household Products Packaging

In the third quarter, the company recorded an accounts receivable provision of $27.0 million as a result of the October 28, 2013, bankruptcy filing of a metal food and household products packaging segment customer. This provision represents the company’s estimate of the most likely potential loss of value it expects to incur on the approximately $46.5 million accounts receivable balance as a result of the financial condition of this customer. The company’s estimate of potential loss as a result of this event may materially change in the future if the customer’s facts and circumstances change.

During the first quarter, the company announced that it will close its Elgin, Illinois, food and household products packaging facility in December 2013. The third quarter and first nine months included charges of $1.9 million and $28.0 million, respectively, in connection with this planned closure. The total charges in the first nine months were composed of $16.0 million for severance, pension and other employee benefits; $4.2 million for the write down of the land and building to net realizable value; and $7.8 million for the accelerated depreciation on assets to be abandoned and other closure costs. The Elgin facility produces steel aerosol and specialty cans, as well as flat steel sheet used by other Ball facilities. The plant’s production capabilities will be supplied by other Ball food and household products packaging facilities.

The second quarter also included a charge of $5.9 million to migrate certain hourly employees from a multi-employer defined benefit pension plan as of January 1, 2014, to a Ball-sponsored defined benefit pension plan. Additionally, the first six months included income of $3.5 million to accrue for the reimbursement of funds paid in 2012 for the settlement of certain Canadian defined benefit pension liabilities related to previously closed facilities.

2012

Metal Beverage Packaging, Americas and Asia

In August 2012, Ball announced plans to close its Columbus, Ohio, U.S., beverage can manufacturing facility and its Gainesville, Florida, U.S., end facility in order to consolidate the company’s 12-ounce beverage can and end production capacity to meet changing market demand. In connection with the closures, the company recorded initial charges of $31.3 million in the third quarter, of which $20.1 million represented severance, pension and other employee benefits; $6.6 million represented accelerated depreciation and $4.6 million represented the obsolescence of tooling and spares.

The third quarter and first nine months of 2012 also included net charges of $0.2 million and $1.6 million, respectively, for ongoing costs related to previously closed facilities and other insignificant costs.

Metal Beverage Packaging, Europe, and Corporate

The third quarter and first nine months included charges of $4.2 million and $9.6 million, respectively, as well as $1.3 million of additional tax expense, in connection with the relocation of the company’s European headquarters from Germany to Switzerland, which was completed during the third quarter of 2012. The third quarter and first nine months of 2012 also included net charges of $1.1 million and $1.5 million, respectively, for ongoing costs related to previously closed facilities and other insignificant charges.

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

($ in millions)	Metal Beverage Packaging, Americas & Asia			Metal Food & Household Products Packaging			Aerospace & Technologies			Corporate and Other Costs			Total

Balance at December 31, 2012	$	16.4		$	3.0		$	1.9		$	3.8		$	25.1
Charges to earnings	(3.3		)	18.4			—			0.2			15.3
Cash payments and other activity	(11.3		)	(6.3		)	(1.9		)	(4.0		)	(23.5		)
Balance at September 30, 2013	$	1.8		$	15.1		$	—		$	—		$	16.9

The carrying value of assets held for sale in connection with facility closures was $36.8 million at September 30, 2013, and $31.4 million at December 31, 2012.