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Employee Benefit Obligations
 6 Months Ended
Jun. 30, 2016
Employee Benefit Obligations  
Employee Benefit Obligations

13.    Employee Benefit Obligations

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

($ in millions)

    

2016

    

2015

 

 

 

 

 

 

 

 

 

Underfunded defined benefit pension liabilities

 

$
1,178

 

$
705

 

Less current portion and prepaid pension assets

 

 
(208)

 

 
(17)

 

Long-term defined benefit pension liabilities

 

 
970

 

 
688

 

Retiree medical and other postemployment benefits

 

 
251

 

 
148

 

Deferred compensation plans

 

 
263

 

 
281

 

Other

 

 
43

 

 
30

 

 

 

$
1,527

 

$
1,147

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

2016

 

2015

 

($ in millions)

    

U.S.

    

Foreign

    

Total

    

U.S.

    

Foreign

    

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ball-sponsored plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$
12

 

$
3

 

$
15

 

$
13

 

$
4

 

$
17

 

Interest cost

 

 
15

 

 
5

 

 
20

 

 
14

 

 
4

 

 
18

 

Expected return on plan assets

 

 
(18)

 

 
(5)

 

 
(23)

 

 
(20)

 

 
(5)

 

 
(25)

 

Recognized net actuarial loss

 

 
8

 

 
1

 

 
9

 

 
10

 

 
2

 

 
12

 

Settlements/curtailments/special termination

 

 

 —

 

 
80

(a)

 
80

 

 

 —

 

 

 —

 

 

 —

 

Net periodic benefit cost for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ball-sponsored plans

 

 
17

 

 
84

 

 
101

 

 
17

 

 
5

 

 
22

 

Net periodic benefit cost for multiemployer plans

 

 

 —

 

 

 —

 

 

 —

 

 
1

 

 

 —

 

 
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net periodic benefit cost

 

$
17

 

$
84

 

$
101

 

$
18

 

$
5

 

$
23

 

 

(a)

Amount relates to plans transferred to the Divestment Business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2016

 

2015

 

($ in millions)

    

U.S.

    

Foreign

    

Total

    

U.S.

    

Foreign

    

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ball-sponsored plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$
24

 

$
6

 

$
30

 

$
26

 

$
7

 

$
33

 

Interest cost

 

 
30

 

 
9

 

 
39

 

 
29

 

 
9

 

 
38

 

Expected return on plan assets

 

 
(36)

 

 
(9)

 

 
(45)

 

 
(40)

 

 
(10)

 

 
(50)

 

Amortization of prior service cost

 

 
(1)

 

 

 —

 

 
(1)

 

 
(1)

 

 

 —

 

 
(1)

 

Recognized net actuarial loss

 

 
16

 

 
3

 

 
19

 

 
20

 

 
5

 

 
25

 

Settlements/curtailments/special termination

 

 

 —

 

 
80

(a)

 
80

 

 

 —

 

 

 —

 

 

 —

 

Net periodic benefit cost for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ball-sponsored plans

 

 
33

 

 
89

 

 
122

 

 
34

 

 
11

 

 
45

 

Net periodic benefit cost for multi-employer plans

 

 
1

 

 

 —

 

 
1

 

 
1

 

 

 —

 

 
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net periodic benefit cost

 

$
34

 

$
89

 

$
123

 

$
35

 

$
11

 

$
46

 

(a)

Amount relates to plans transferred in the Divestment Business.

 

Contributions to the company’s defined benefit pension plans, not including the unfunded German plans, were $28 million in the first six months of 2016 and insignificant in the first six months of 2015, and are expected to be in the range of $260 million for the full year of 2016. This estimate may change based on any changes to the U.S. Pension Protection Act and actual plan asset performance, among other factors. Payments to participants in the unfunded German plans were $9 million in the first six months of 2016 and are expected to be in the range of $18 million for the full year of 2016.

 

Ball acquired 11 pension plans and 2 retiree medical plans in the Rexam acquisition, and divested existing plans both in the US and in certain foreign countries. Rexam agreed to establish and fund an escrow cash account in the amount of $173 million, on behalf of the acquired Rexam UK pension plan and which was contributed into the UK pension plan in July, 2016. This escrow cash account has been included in the June 30, 2016 balance sheet as long-term restricted cash in noncurrent assets.