5. Business Consolidation and Other Activities

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


	Years Ended December 31,
($ in millions)	2016		2015		2014

Beverage packaging, North and Central America	$	(20)	$	(19)	$	(11)
Beverage packaging, South America		(15)		(3)		—
Beverage packaging, Europe		(24)		(10)		(9)
Food and aerosol packaging		(26)		—		(42)
Aerospace		—		1		(14)
Other		(252)		(164)		(5)
	$	(337)	$	(195)	$	(81)

2016

Beverage Packaging, North and Central America

During 2016, the company recorded charges of $4 million for professional services and other costs associated with the acquisition of Rexam.

During 2016, the company also recorded charges of $4 million related to the plant closure in Bristol, Virginia, announced in 2015.

In December 2016, the company announced the planned closure of its beverage packaging facility in Reidsville, North Carolina, which is expected to cease production in the middle of 2017. Charges in the fourth quarter of 2016 were $9 million and comprised of employee severance, pension and other benefits, asset impairments, and facility shut down and disposal costs.

Other charges in 2016 included $3 million of individually insignificant activities.

Beverage Packaging, South America

During 2016, the company recorded charges of $14 million for professional services and other costs associated with the acquisition of Rexam.

Other charges in 2016 included $1 million of individually insignificant activities.

Beverage Packaging, Europe

During 2016, the company recorded charges of $22 million for professional services and other costs associated with the acquisition of Rexam.

Other charges in 2016 included $2 million of individually insignificant activities.

Food and Aerosol Packaging

During the first quarter of 2016, the company announced the planned closure of its food and aerosol packaging flat sheet production and end-making facility in Weirton, West Virginia, which is expected to cease production in early 2017. Charges in 2016 of $18 million were composed of employee severance and benefits, facility shutdown costs, and asset impairment and disposal costs.

In October 2016, the company sold its specialty tin manufacturing facility in Baltimore, Maryland, which resulted in a gain on sale of $9 million.

During the fourth quarter of 2016, the company rationalized certain manufacturing equipment to align production capacity with its customer requirements. The fourth quarter charge of $10 million consisted of accelerated depreciation of the rationalized equipment and write-offs of costs associated with relocated assets.

Other charges in 2016 included $7 million of individually insignificant activities.

Other

During 2016, the company recorded the following charges:

Expense of $301 million for professional services and other costs associated with the acquisition of Rexam.

Foreign currency losses of $173 million from the revaluation of foreign currency denominated restricted cash and intercompany loans related to the cash component of the Rexam acquisition purchase price, the sale of the Divestment Business and the revaluation of the euro-denominated debt issuance obtained in December 2015.

Expense of $108 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

A gain of $344 million in connection with the sale of the Ball portion of the Divestment Business.

Expense of $14 million for individually insignificant activities.

2015

Beverage Packaging, North and Central America

During 2015, the company announced the planned closure of its Bristol, Virginia, beverage packaging end-making facility, which ceased production in the second quarter of 2016. The closure will realign end-making capacities in North America to better position the company to meet customer demand. The company recorded charges of $19 million in 2015, which were comprised of $17 million in severance, pension and other employee benefits and other individually insignificant items totaling $2 million.

Beverage Packaging, South America

During 2015, the company recognized charges of $3 million for individually insignificant items.

Beverage Packaging, Europe

During 2015, the company recorded a charge of $5 million for the write down of property held for sale to fair value less cost to sell.

During 2015, the company also recognized charges of $5 million for individually insignificant items.

Aerospace

During 2015, the company recognized a net of $1 million gain for individually insignificant items.

Other

During the year ended December 31, 2015, the company recorded the following charges:

Expenses of $139 million for professional services and other costs associated with the acquisition of Rexam announced in February 2015.

$14 million of net foreign currency gains and losses from the revaluation of foreign currency denominated restricted cash held to pay a portion of the cash component of the Rexam acquisition purchase price and the revaluation of the euro-denominated debt issuance in December 2015.

Expenses of $11 million for individually insignificant activities.

2014

Beverage Packaging, North and Central America

During September 2014, the company executed a lump sum buyout offer to certain terminated vested pension plan participants in its U.S. defined benefit pension plans. The offer provided participants with a one-time election to receive a lump-sum payout in full settlement of their remaining pension benefits. In connection with this offer, a non-cash charge of $14 million was recorded in the segment for the settlement of its pension benefit obligations in 2014.

During 2014, a fire occurred at a beverage packaging, U.S. facility. As a result, the company recorded a gain of $4 million to reflect the difference between the net book value of the impaired assets and the net insurance proceeds.

Also included in 2014 were net charges of $1 million related to ongoing costs related to previously closed facilities and other insignificant activities.

Beverage Packaging, Europe

The company recorded charges of $4 million, primarily for headcount reductions, cost-out initiatives and the relocation of the company’s former European headquarters from Germany to Switzerland.

Also included in 2014 were charges of $5 million related to the write-off of previously capitalized costs associated with the company’s Lublin, Poland, facility, and for other insignificant activities.

Food and Aerosol Packaging

In the fourth quarter of 2014, the company recorded a provision against the balance of a long-term receivable of $17 million as a result of the financial difficulties of a food and aerosol packaging segment customer. This provision represented the company's estimate of the most likely potential loss of value it expected to incur as a result of the financial condition of this customer.

During 2014, the company recorded a non-cash charge of $10 million for the aforementioned settlement of its pension benefit obligations.

In 2014, the company recorded charges of $6 million related to a reduction in force to eliminate certain food can production in the Oakdale, California, facility, as well as charges related to voluntary separation programs. The year also included charges of $4 million for costs in connection with the announced closure of its Danville, Illinois, steel aerosol packaging facility. Additionally, charges of $5 million were recorded for previously closed facilities and other insignificant activities.

Aerospace

During 2014, the company recorded a non-cash charge of $14 million for the aforementioned settlement of its pension benefit obligations.

Other

During the year ended December 31, 2014, the company recorded the following charges:

Non-cash charge of $7 million for the aforementioned settlement of its pension benefit obligations.

Received compensation of $5 million for the reimbursement of severance costs incurred in connection with the company's closure and relocation of the Shenzhen, PRC, manufacturing facility in 2013.

Net charges of $2 million related to business reorganization activities in the company’s beverage packaging, Asia Pacific, operations, and for ongoing costs related to previously closed facilities and other insignificant activities.

Expenses of $1 million for individually insignificant items.