13. Employee Benefit Obligations


	September 30,		December 31,
($ in millions)	2017		2016

Underfunded defined benefit pension liabilities	$	877	$	963
Less: Current portion		(26)		(25)
Long-term defined benefit pension liabilities		851		938
Retiree medical and other postemployment benefits		213		226
Deferred compensation plans		279		272
Other		63		61
	$	1,406	$	1,497

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


	Three Months Ended September 30,
	2017							2016
($ in millions)	U.S.			Foreign		Total		U.S.		Foreign		Total

Ball-sponsored plans:
Service cost	$	13		$	4	$	17	$	17	$	4	$	21
Interest cost		29			22		51		33		25		58
Expected return on plan assets		(31)			(26)		(57)		(35)		(31)		(66)
Amortization of prior service cost		1			—		1		—		1		1
Recognized net actuarial loss		8			1		9		8		1		9
Curtailment and settlement losses including special termination benefits		43	(a)		—		43		—		—		—
Total net periodic benefit cost	$	63		$	1	$	64	$	23	$	—	$	23

(a)

Includes settlement losses related to the purchase of non-participating annuities, plant shutdown benefits and other settlements that occur in the normal course of business, which have been recorded in business consolidation and other activities.


	Nine Months Ended September 30,
	2017							2016
($ in millions)	U.S.			Foreign		Total		U.S.		Foreign			Total

Ball-sponsored plans:
Service cost	$	37		$	12	$	49	$	41	$	10		$	51
Interest cost		95			66		161		63		34			97
Expected return on plan assets		(97)			(78)		(175)		(71)		(40)			(111)
Amortization of prior service cost		1			—		1		(1)		—			(1)
Recognized net actuarial loss		26			3		29		24		4			28
Curtailment and settlement losses including special termination benefits		43	(a)		—		43		—		80	(b)		80
Net periodic benefit cost for Ball sponsored plans		105			3		108		56		88			144
Net periodic benefit cost for multi-employer plans		2			—		2		1		—			1
Total net periodic benefit cost	$	107		$	3	$	110	$	57	$	88		$	145

(a)

(b)

Amount relates to plans transferred to the Divestment Business.

In August 2017, Ball completed the purchase of non-participating group annuity contracts that have transferred to an insurance company for the pension benefit obligation totaling approximately $224 million in the U.S. The purchase of the annuity contracts triggered settlement accounting. Regular lump sums paid in the normal course of plan operations are also included in the total settlement amount. Both of these resulted in the recognition of a loss recorded in business consolidation and other activities from the settlement of $41 million, from accumulated other comprehensive income. The pension obligation was also remeasured during the quarter for the plans impacted.

Contributions to the company’s defined benefit pension plans, not including unfunded German, Swedish and certain U.S. plans, were $182 million in the first nine months of 2017 compared to $246 million in the first nine months of 2016 and are expected to be in the range of $190 million for the full year of 2017. This estimate may change based on any changes to the U.S. Pension Protection Act and actual plan asset performance, among other factors. Included in the 2017 contributions were contributions to acquired Rexam defined benefit pension plans. Payments to participants in the unfunded German, Swedish and certain U.S. plans were $19 million in the first nine months of 2017 compared to $18 million in the first nine months of 2016 and are expected to be in the range of $22 million for the full year of 2017.