5. Business Consolidation and Other Activities

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


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2017		2016		2017		2016

Beverage packaging, North and Central America	$	(34)	$	(6)	$	(45)	$	(12)
Beverage packaging, South America		(4)		(6)		(4)		(15)
Beverage packaging, Europe		(62)		(10)		(69)		(19)
Food and aerosol packaging		(2)		(4)		7		(21)
Other		(55)		(37)		(142)		(235)
	$	(157)	$	(63)	$	(253)	$	(302)

2017

Beverage Packaging, North and Central America

During the third quarter of 2017, the company announced the closure of its beverage can manufacturing facilities in Chatsworth, California, and Longview, Texas, and its beverage end manufacturing facility in Birmingham, Alabama. The Birmingham and Longview plants are currently expected to cease production by the end of the second quarter of 2018, and the Chatsworth plant is currently expected to cease production by the end of the third quarter of 2018. During the third quarter, the company recorded charges of $29 million for employee severance and benefits and $4 million for facility shutdown costs, asset impairment, accelerated depreciation and other costs related to the closures. The majority of these charges are expected to be paid during the remainder of 2017 and by the end of the third quarter of 2018.

In December 2016, the company announced the closure of its beverage packaging facility in Reidsville, North Carolina, which ceased production during the second quarter of 2017. During the first nine months of 2017, the company recorded charges of $7 million for employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and other costs related to the closure of its Reidsville, North Carolina, plant.

Other charges in the third quarter and first nine months of 2017 included $1 million and $5 million, respectively, of individually insignificant activities.

Beverage Packaging, South America

Charges in the third quarter and first nine months of 2017 included $4 million and $4 million, respectively, for individually insignificant activities.

Beverage Packaging, Europe

During the first quarter of 2017, the company announced its intent to close its beverage packaging facility in Recklinghausen, Germany, which ceased production on July 31, 2017. During the third quarter of 2017, the company recorded charges of $55 million for employee severance and benefits and $7 million for facility shutdown costs, asset impairment, accelerated depreciation and other costs. The company expects to incur approximately $30 million of additional expense related to the closure. The majority of these charges are expected to be paid during the remainder of 2017 and by the end of 2018.

During the first nine months of 2017, the company recorded charges of $2 million for professional services and other costs associated with the acquisition of Rexam.

Other charges in the first nine months of 2017 included $5 million for individually insignificant activities.

Food and Aerosol Packaging

During the third quarter and first nine months of 2017, the company recorded charges of $1 million and $6 million, respectively, for facility shutdown costs and accelerated depreciation for the closure of its Weirton, West Virginia, plant which ceased production during the first quarter of 2017.

In March 2017, the company sold its food and aerosol packaging paint and general line can plant in Hubbard, Ohio, and recorded a gain on sale of $15 million.

Other charges in the third quarter and first nine months of 2017 included $1 million and $2 million, respectively, for individually insignificant activities.

Other

During the third quarter of 2017, the company recorded the following amounts:

A settlement loss of $41 million primarily related to the purchase of non-participating group annuity contracts to settle a portion of the projected pension benefit obligations in certain Ball U.S. defined benefit pension plans which triggered settlement accounting. The settlement loss primarily represented a pro rata portion of the aggregate unamortized actuarial loss in these pension plans.

Expense of $5 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Expense of $2 million for professional services and other costs associated with the acquisition of Rexam.

Expense of $7 million for individually insignificant activities.

During the first nine months of 2017, the company recorded the following amounts:

Expense of $34 million for the estimated amount of claims covered by the indemnification for certain tax matters provided to the buyer in the sale of the Divestment Business.

Expense of $22 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

A $14 million reduction in the gain recognized in connection with the sale of the Ball portion of the Divestment Business.

Expense of $12 million for professional services and other costs associated with the acquisition of Rexam.

Expense of $19 million for individually insignificant activities.

2016

Beverage Packaging, North and Central America

During the third quarter and first nine months of 2016, the company recorded charges of $2 million and $3 million, respectively, for professional services and other costs associated with the acquisition of Rexam.

During the third quarter and first nine months of 2016, the company recorded charges of $3 million and $4 million, respectively, related to the plant closure in Bristol, Virginia.

Other charges in the third quarter and first nine months of 2016 included $1 million and $5 million, respectively, of individually insignificant activities.

Beverage Packaging, South America

During the third quarter and first nine months of 2016, the company recorded charges of $2 million and $11 million, respectively, for professional services and other costs associated with the acquisition of Rexam.

Other charges in the third quarter and first nine months of 2016 included $4 million of individually insignificant activities.

Beverage Packaging, Europe

During the first nine months of 2016, the company recorded charges of $7 million for professional services and other costs associated with the acquisition of Rexam.

Other charges in the third quarter and first nine months of 2016 included $10 million and $12 million, respectively, of individually insignificant activities.

Food and Aerosol Packaging

During the third quarter and first nine months of 2016, the company recorded charges of $3 million and $14 million, respectively, for employee severance and benefits, facility shutdown costs and asset impairment and disposal costs for the closure of its Weirton, West Virginia, plant.

Other charges in the third quarter and first nine months of 2016, included $1 million and $7 million, respectively, of individually insignificant activities.

Other

During the third quarter of 2016, the company recorded the following amounts:

Expense of $22 million for compensation arrangements related to the Rexam acquisition primarily for severance payments to terminated or divested personnel.

Expense of $33 million for professional services and other costs associated with the acquisition of Rexam.

Foreign currency gains of $22 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 in December 2015.

Expense of $4 million for individually insignificant activities.

During the first nine months of 2016, the company recorded the following charges:

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

Expense of $289 million for professional services and other costs associated with the acquisition of Rexam.

Foreign currency losses of $174 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 in December 2015.

Expense of $106 million for compensation arrangements related to the Rexam acquisition.

Expense of $10 million for individually insignificant activities.

Following is a summary by segment for the restructuring liabilities recorded in connection with business consolidation activities:


($ in millions)	Beverage Packaging, North & Central America		Beverage Packaging, South America		Beverage Packaging, Europe		Food & Aerosol Packaging		Other		Total

Balance at December 31, 2016	$	8	$	—	$	4	$	6	$	2	$	20
Charges in earnings		18		2		55		7		1		83
Cash payments and other activity		(6)		—		(13)		(12)		(2)		(33)
Balance at September 30, 2017	$	20	$	2	$	46	$	1	$	1	$	70