Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]


($ in millions, except per share amounts)	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016
2016	As Previously Reported		Adjustments (a)		As Revised		As Previously Reported		Adjustments (a)		As Revised
Net sales	$	2,815	$	(63)	$	2,752	$	6,600	$	(63)	$	6,537
Cost of sales (excluding depreciation and amortization)		(2,338)		63		(2,275)		(5,351)		63		(5,288)
Business consolidation and other activities		(79)		16		(63)		(319)		17		(302)
Earnings before interest and taxes		116		16		132		283		17		300
Earnings before taxes		34		16		50		16		17		33
Tax (provision) benefit		(38)		15		(23)		191		(17)		174
Net earnings		3		31		34		213		—		213
Net earnings attributable to Ball Corporation		—		31		31		210		—		210

Basic earnings per share (b)		—		0.09		0.09		0.69		—		0.69
Diluted earnings per share (b)		—		0.09		0.09		0.67		—		0.67

(a)

The company revised the amounts originally reported for the third quarter of 2016, for the following items:

Reduced net sales and cost of sales (excluding depreciation and amortization) by $63 million to present net sales and cost of sales on a net basis associated with intercompany and transactions where the company is acting as an agent.

Reversed $13 million of expense in business consolidation and other activities for payroll tax obligations associated with compensation arrangements for the Rexam acquisition that should have been accrued upon the change of control in the second quarter of 2016. The company identified this error during the third quarter of 2016 and recorded and disclosed the correction in the third quarter of 2016 as an out-of-period adjustment.

Reversed a $3 million charge recorded to the gain on the sale of the Divestment Business in the business consolidation and other activities that was originally recorded in the third quarter of 2016. The charge was to write off an asset that was sold in the Divestment Business.

Recorded a $16 million tax benefit associated with the release of deferred taxes related to the acquisition of Rexam for the step-up of inventory value that flowed through to cost of sales in the third quarter of 2016 and $1 million of tax expense for the tax effects of the adjustments above.

The company revised the amounts originally reported for the first nine months of 2016, for the following items:

Recorded $17 million of additional net gain on the sale of the Divestment Business in business consolidation and other activities for assets received by the buyer that should have been included in the amount owed to the company and liabilities that should have been derecognized by the company at the date of sale, as well as other insignificant items.

Recorded $30 million of additional tax expense associated with using an incorrect tax basis for the gain on the sale of the Divestment Business, a $16 million tax benefit associated with the release of deferred taxes related to the acquisition of Rexam for the step-up of inventory value that flowed through to cost of sales in the third quarter of 2016 and $3 million of tax expense for the tax effects of the adjustments noted above.

Amounts in 2016 have been retrospectively adjusted for the two-for-one stock split that was effective on May 16, 2017.