Employee Benefit Obligations

9 Months Ended

Sep. 30, 2013

Employee Benefit Obligations

Employee Benefit Obligations

12. Employee Benefit Obligations

	September 30,			December 31,
($ in millions)	2013			2012
Underfunded defined benefit pension liabilities, net	$	762.7		$	820.2
Less current portion and prepaid pension assets	(23.8		)	(25.0		)
Long-term defined benefit pension liabilities	738.9			795.2
Retiree medical and other postemployment benefits	175.0			177.0
Deferred compensation plans	239.5			237.8
Other	22.3			28.1
	$	1,175.7		$	1,238.1

Components of net periodic benefit cost associated with the company’s defined benefit pension plans were:

	Three Months Ended September 30,
	2013									2012
($ in millions)	U.S.			Foreign			Total			U.S.			Foreign			Total
Ball-sponsored plans:
Service cost	$	12.1		$	2.5		$	14.6		$	11.7		$	2.0		$	13.7
Interest cost	13.8			5.9			19.7			14.2			7.1			21.3
Expected return on plan assets	(19.3		)	(3.4		)	(22.7		)	(18.6		)	(4.3		)	(22.9		)
Amortization of prior service cost	—			(0.1		)	(0.1		)	0.2			(0.1		)	0.1
Recognized net actuarial loss	10.7			1.2			11.9			8.4			1.8			10.2
Curtailment loss	—			—			—			0.1			—			0.1
Net periodic benefit cost for Ball-sponsored plans	17.3			6.1			23.4			16.0			6.5			22.5
Net periodic benefit cost for multi-employer plans	0.7			—			0.7			0.6			—			0.6
Total net periodic benefit cost	$	18.0		$	6.1		$	24.1		$	16.6		$	6.5		$	23.1

	Nine Months Ended September 30,
	2013									2012
($ in millions)	U.S.			Foreign			Total			U.S.			Foreign			Total
Ball-sponsored plans:
Service cost	$	36.5		$	7.5		$	44.0		$	35.1		$	5.9		$	41.0
Interest cost	41.4			17.8			59.2			42.4			21.5			63.9
Expected return on plan assets	(58.0		)	(10.2		)	(68.2		)	(55.5		)	(12.8		)	(68.3		)
Amortization of prior service cost	—			(0.3		)	(0.3		)	0.7			(0.3		)	0.4
Recognized net actuarial loss	32.0			3.7			35.7			25.1			5.3			30.4
Curtailment loss (a)	4.1			—			4.1			0.3			—			0.3
Net periodic benefit cost for Ball-sponsored plans	56.0			18.5			74.5			48.1			19.6			67.7
Multi-employer plans:
Net periodic benefit cost, excluding curtailment loss	2.0			—			2.0			2.0			—			2.0
Curtailment loss (a)	9.8			—			9.8			—			—			—
Net periodic benefit cost for multi-employer plans	11.8			—			11.8			2.0			—			2.0
Total net periodic benefit cost	$	67.8		$	18.5		$	86.3		$	50.1		$	19.6		$	69.7

(a) Curtailment losses in 2013 are related to the closure of the company’s Elgin, Illinois, facility and the migration of certain of the company’s Weirton, West Virginia, hourly employees from a multi-employer defined benefit pension plan to a Ball-sponsored defined benefit pension plan as of January 1, 2014. Further details are available in Note 5.

Contributions to the company’s defined global benefit pension plans, not including the unfunded German plans, were $89.7 million in the first nine months of 2013 ($108.7 million in 2012). The total contributions to these funded plans are expected to be approximately $95 million for the full year. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors. Payments to participants in the unfunded German plans were $16.7 million (€12.7 million) in the first nine months of 2013 and are expected to be approximately $23 million (approximately €17 million) for the full year.