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Business Consolidation and Other Activities
3 Months Ended
Mar. 31, 2018
Business Consolidation and Other Activities  
Business Consolidation and Other Activities

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 March 31,

 

($ in millions)

    

2018

    

2017

    

 

 

 

 

 

 

 

 

Beverage packaging, North and Central America

 

$

(3)

 

$

(4)

 

Beverage packaging, South America

 

 

 —

 

 

 3

 

Beverage packaging, Europe

 

 

(10)

 

 

(3)

 

Food and aerosol packaging

 

 

 —

 

 

10

 

Other

 

 

(17)

 

 

(61)

 

 

 

$

(30)

 

$

(55)

 

 

2018

 

Beverage Packaging, North and Central America

 

During the first quarter of 2018, the company recorded income of $5 million for revised estimates of charges recorded in prior periods in connection with the previously announced closures 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 expected to cease production by the end of the second quarter of 2018, and the Chatsworth plant is expected to cease production by the end of the third quarter of 2018. The majority of the charges are expected to be paid prior to the plants ceasing production.

 

During the first quarter of 2018, the company recorded charges of $2 million related to the closure of its Reidsville, North Carolina, plant, which ceased production in 2017.

 

Other charges in the first quarter included $6 million for individually insignificant activities.

 

Beverage Packaging, Europe

 

During the first quarter of 2018, the company recorded charges of $4 million for employee severance and benefits and $6 million for facility shutdown costs and other costs in connection with the closure of its Recklinghausen, Germany, plant which ceased production during the third quarter of 2017. The majority of the closure costs are expected to be paid by the end of 2018.

 

Corporate and Other

 

During the first quarter of 2018, the company recorded expense of $11 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

 

Other charges in the first quarter included $6 million for individually insignificant activities.

 

2017

 

Beverage Packaging, North and Central America

 

During the first quarter of 2017, the company recorded charges of $3 million for employee severance and accelerated depreciation related to the closure of its Reidsville, North Carolina, plant.

 

Other charges in the first quarter included $1 million for individually insignificant activities.

 

Beverage Packaging, South America

 

Income in the first quarter of 2017 included $3 million for individually insignificant activities.

 

Beverage Packaging, Europe

 

During the first quarter 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 $1 million for individually insignificant activities.

 

Food and Aerosol Packaging

 

During the first quarter of 2017, the company recorded charges of $3 million 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.

 

During the first quarter of 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 first quarter included $2 million for individually insignificant activities.

 

Corporate and Other

 

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

·

Expense of $27 million for the estimated amount of claims covered by the indemnification for certain tax matters provided to the buyer of the businesses divested (Divestment Business) in connection with the 2016 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 $9 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

·

Expense of $5 million for professional services and other costs associated with the acquisition of Rexam.

·

Expense of $6 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, Europe

    

Food & Aerosol Packaging

    

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

$

26

 

$

41

 

$

 1

 

$

68

Charges in earnings

 

 

(5)

 

 

10

 

 

 —

 

 

 5

Cash payments and other activity

 

 

(1)

 

 

(33)

 

 

(1)

 

 

(35)

Balance at March 31, 2018

 

$

20

 

$

18

 

$

 —

 

$

38