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Employee Benefit Obligations
 6 Months Ended
Jun. 30, 2018
Employee Benefit Obligations  
Employee Benefit Obligations

16.    Employee Benefit Obligations

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

($ in millions)

 

2018

    

2017

 

 

 

 

 

 

 

Underfunded defined benefit pension liabilities

 

$

945

 

$

945

Less: Current portion

 

 

(26)

 

 

(27)

Long-term defined benefit pension liabilities

 

 

919

 

 

918

Long-term retiree medical liabilities

 

 

195

 

 

196

Deferred compensation plans

 

 

264

 

 

275

Other

 

 

74

 

 

74

 

 

$

1,452

 

$

1,463

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

2018

 

2017

($ in millions)

    

U.S.

    

Foreign

    

Total

    

U.S.

    

Foreign

    

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ball-sponsored plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

14

 

$

 4

 

$

18

 

$

12

 

$

 4

 

$

16

Interest cost

 

 

24

 

 

18

 

 

42

 

 

33

 

 

22

 

 

55

Expected return on plan assets

 

 

(28)

 

 

(27)

 

 

(55)

 

 

(33)

 

 

(26)

 

 

(59)

Amortization of prior service cost

 

 

 1

 

 

 —

 

 

 1

 

 

 1

 

 

 —

 

 

 1

Recognized net actuarial loss

 

 

 9

 

 

 1

 

 

10

 

 

 8

 

 

 1

 

 

 9

Net periodic benefit cost for Ball sponsored plans

 

 

20

 

 

(4)

 

 

16

 

 

21

 

 

 1

 

 

22

Net periodic benefit cost for multi-employer plans

 

 

 1

 

 

 —

 

 

 1

 

 

 1

 

 

 —

 

 

 1

Total net periodic benefit cost

 

$

21

 

$

(4)

 

$

17

 

$

22

 

$

 1

 

$

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2018

 

2017

 

($ in millions)

    

U.S.

    

Foreign

    

Total

    

U.S.

    

Foreign

    

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ball-sponsored plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

27

 

$

 8

 

$

35

 

$

24

 

$

 8

 

$

32

 

Interest cost

 

 

48

 

 

36

 

 

84

 

 

66

 

 

44

 

 

110

 

Expected return on plan assets

 

 

(55)

 

 

(54)

 

 

(109)

 

 

(66)

 

 

(52)

 

 

(118)

 

Amortization of prior service cost

 

 

 1

 

 

 —

 

 

 1

 

 

 1

 

 

 —

 

 

 1

 

Recognized net actuarial loss

 

 

19

 

 

 2

 

 

21

 

 

17

 

 

 2

 

 

19

 

Net periodic benefit cost for Ball sponsored plans

 

 

40

 

 

(8)

 

 

32

 

 

42

 

 

 2

 

 

44

 

Net periodic benefit cost for multi-employer plans

 

 

 1

 

 

 —

 

 

 1

 

 

 2

 

 

 —

 

 

 2

 

Total net periodic benefit cost

 

$

41

 

$

(8)

 

$

33

 

$

44

 

$

 2

 

$

46

 

 

 

Non-service pension income totaling $2 million and $3 million for the three and six months ended June 30, 2018, respectively, are included in selling, general, and administrative (SG&A) expenses. Non-service pension costs totaling $6 million and $12 million for the three and six months ended June 30, 2017, respectively, are included in cost of sales and SG&A and, due to immateriality, were not retrospectively adjusted as required by the newly adopted accounting standard for pension and postretirement benefit costs as described in Note 2.

 

Contributions to the company’s defined benefit pension plans, not including unfunded German, Swedish and certain U.S. plans, were $4 million in the first six months of 2018 compared to $110 million in the first six months of 2017 and are expected to be in the range of $45 million for the full year of 2018. This estimate may change based on changes to the U.S. Pension Protection Act and actual plan asset performance, among other factors. Payments to participants in the unfunded German, Swedish and certain U.S. plans were $10 million in the first six months of 2018 compared to $12 million in the first six months of 2017 and are expected to be in the range of $21 million for the full year of 2018.