6. 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 June 30,				Six Months Ended June 30,
($ in millions)	2018		2017		2018		2017

Beverage packaging, North and Central America	$	1	$	(7)	$	(2)	$	(11)
Beverage packaging, South America		(1)		(3)		(1)		—
Beverage packaging, Europe		(4)		(4)		(14)		(7)
Food and aerosol packaging		(47)		(1)		(47)		9
Other		(18)		(26)		(35)		(87)
	$	(69)	$	(41)	$	(99)	$	(96)

2018

Beverage Packaging, North and Central America

During the six months ended June 30, 2018, the company recorded the reversal of $5 million of expense 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 plant ceased production during the second quarter of 2018, and the Chatsworth and Longview plants are expected to cease production by the end of the third quarter of 2018.

During the six months ended June 30, 2018, the company recorded charges of $2 million related to the closure of its Reidsville, North Carolina, plant, which ceased production in 2017.

Other income and charges in the three and six months ended June 30, 2018, included $1 million of income and $5 million of expense, respectively, for individually insignificant activities.

Beverage Packaging, South America

Charges in the three and six months ended June 30, 2018, included $1 million of expense for individually insignificant activities.

Beverage Packaging, Europe

During the three and six months ended June 30, 2018, the company recorded charges of $2 million and $6 million, respectively, for employee severance and benefits and $1 million and $7 million, respectively, 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.

Other charges in the three and six months ended June 30, 2018, included $1 million of expense for individually insignificant activities.

Food and aerosol packaging

As discussed in Note 4, during the three and six months ended June 30, 2018, Ball recorded a $41 million loss on transfer of assets that were held for sale as of June 30, 2018.

During the three and six months ended June 30, 2018, the food and aerosol packaging segment recorded charges of $4 million for employee severance and benefits, accelerated depreciation and inventory impairment related to manufacturing cost rationalization.

Other charges in the three and six months ended June 30, 2018, included $2 million of expense for individually insignificant activities.

Corporate and Other

During the three months ended June 30, 2018, the company recorded the following amounts:

Expense of $2 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.

Expense of $4 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Expense of $4 million for professional services and other costs associated with the sale of the U.S. steel food and steel aerosol packaging business.

Expense of $8 million for individually insignificant activities.

During the six months ended June 30, 2018, the company recorded the following amounts:

Expense of $2 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 $15 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Expense of $4 million for professional services and other costs associated with the sale of the U.S. steel food and steel aerosol packaging business.

Expense of $14 million for individually insignificant activities.

2017

Beverage Packaging, North and Central America

During the three and six months ended June 30, 2017, the company recorded charges of $4 million and $7 million, respectively, for employee severance and benefits, facility shutdown costs, asset impairment, accelerated depreciation and disposal costs related to the closure of its Reidsville, North Carolina, plant.

Other charges in the three and six months ended June 30, 2017 included $3 million and $4 million, respectively, for individually insignificant activities.

Beverage Packaging, South America

During the three and six months ended June 30, 2017, the company recorded charges of $2 million for professional services and other costs associated with the acquisition of Rexam.

Other charges in the three and six months ended June 30, 2017, included expense of $1 million and income of $2 million, respectively, for individually insignificant activities.

Beverage Packaging, Europe

During the six months ended June 30, 2017, the company recorded charges of $2 million for professional services and other costs associated with the acquisition of Rexam.

Other charges in the three and six months ended June 30, 2017, included expense of $4 million and $5 million, respectively, for individually insignificant activities.

Food and Aerosol Packaging

During the three and six months ended June 30, 2017, the company recorded charges of $2 million and $5 million, respectively, for facility shutdown costs and accelerated depreciation for the closure of its Weirton, West Virginia, plant, which ceased production during the second 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 three and six months ended June 30, 2017, included income of $1 million and expense of $1 million for individually insignificant activities.

Corporate and Other

During the three months ended June 30, 2017, the company recorded the following amounts:

Expense of $7 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 $8 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.

During the six months ended 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.

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

Expense of $17 million for long-term incentive and other compensation arrangements associated with the Rexam acquisition.

Expense of $10 million for professional services and other costs associated with the acquisition of Rexam.

Expense of $12 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 (credits) in earnings		(6)		13		—		7
Cash payments and other activity		(1)		(44)		(1)		(46)
Balance at June 30, 2018	$	19	$	10	$	—	$	29